As per QCP Capital's guidelines, the market is now expecting three interest rate cuts in 2025 after the Fed’s adjustments to its 'quantitative tightening' protocols.

This Singapore-based firm specializing in cryptocurrency trading released an analysis on market dynamics, pinpointing how last night's FOMC meeting acted as the catalyst for the market's upward momentum. QCP Capital The primary driver behind this recent market shift is the Federal Reserve's announcement to reduce its 'quantitative tightening' program starting this April. The markets have viewed this as an indirect interest rate cut, reinforcing expectations that the Fed may begin to ease rates by June. Currently, there's an anticipation of three rate cuts in 2025, likely occurring in June, September, and December. BTC past $85,000 in a sharp rally. 

Nonetheless, QCP Capital has highlighted that beyond this immediate positive market sentiment, the Federal Reserve's overall tone has remained particularly cautious. The policymakers have revised their economic growth predictions down to 1.7%, reflecting a 0.4% decrease, while inflation forecasts have risen to 2.8%, flagging increased concerns of stagflation. Moreover, the Fed's dot plot suggests a shift towards a more dovish position as compared to the December conference, with more officials now predicting that there may be no rate cuts by 2025, potentially rising to four.

On the options front, market activity has returned to pre-crisis levels with a noticeable shift back to call options. This creates a stark contrast to earlier in the week when put options were more favorable. The next significant indicator will be the market's reaction at tonight's US open, which will determine whether the current rally can sustain itself or if investors need to confront the lingering risks. Federal Reserve Currently, Bitcoin is trading at $85,000, having witnessed impressive growth. It has seen an increase of over 2.63% in the last 24 hours, peaking at $87,427 and dipping to $83,399 during this stretch. Bitcoin's dominance in the market stands at 60.61%, a slight decrease from the previous day’s figures.

In the larger landscape of cryptocurrency, the total market capitalization has reached $2.81 trillion, reflecting a 2.92% increase over the last 24 hours. The trading volume across the cryptocurrency market has surged to $104.75 billion in the past day, marking a substantial rise of 50.82%, as per CoinMarketCap data.

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As of the current writing, Bitcoin Alisa, a passionate journalist with Cryptocurrencylistings, focuses on topics like cryptocurrency, zero-knowledge proofs, investments, and the expansive domain of Web3. With a sharp insight into emerging trends and technologies, she provides thorough coverage designed to inform and engage readers navigating the constantly changing landscape of digital finance.

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