QCP Capital: Macro volatility has slightly eased, and the shift in Federal Reserve policy may become a catalyst for Bitcoin's upward trend

ChainCatcher reports that according to the latest analysis by QCP Capital, despite the extremely low possibility of a Fed rate cut this Wednesday, any dovish signals from Powell could potentially act as a catalyst for Bitcoin's upward momentum. As the US shifts from "fiscal dominance" (growth driven by government spending) to deficit reduction pushed by Trump, the burden of policy falls back on monetary policy. Although QCP does not anticipate an unexpected rate cut by the Fed, dovish signals may trigger upward market momentum.

Macro volatility has eased slightly with VIX index falling back to around 20 and Bitcoin volatility also declining, currently fluctuating within $80,000 - $85,000 range. In absence of new tariff news, geopolitical issues are back in focus. Gold prices have broken through $3,000 while Bitcoin continues to show negative correlation.

Historically speaking, cryptocurrency prices often lag behind changes in global liquidity conditions. With possible policy shifts from the Federal Reserve and new rounds of stimulus measures coming from Europe and China after this adjustment period for Bitcoin might usher in another round of bullish trends.