QCP Capital said the Fed is expected to begin its rate-cutting cycle with a 25 basis point cut.
The Fed’s interest rate decision, a crucial one for Bitcoin and altcoins, will be announced today. While it’s generally accepted that the Fed will cut interest rates, there’s speculation about whether it will implement a surprise 50 basis point cut.
While the Fed’s interest rate decision is eagerly awaited, analysis firm QCP Capital said that the Fed is expected to start the interest rate cutting cycle with a 25 basis point cut.
QCP analysts noted that investors are focusing on 2026 as the Fed’s intention to begin interest rate cuts in September is clear in the markets.
At this point, QCP stated that currently the market is pricing in three interest rate cuts in 2025 and three in 2026.
Powell’s press conference and remarks will provide more details about the Fed’s next rate cuts and its near-term policy, analysts said.
A more decisive stance on inflation would signal a slowdown in the pace of interest rate cuts, particularly in an environment where price pressures are mounting, tariff policy is not yet clear, and geopolitical risks remain unresolved.
Analysts, who noted that Bitcoin and cryptocurrencies have recently recovered, noted that any change in the Fed’s dot plot or more hawkish messages could negatively affect the market.
At this point, analysts noted that Bitcoin and altcoins have consistently outperformed stocks since August, and added, “Even if the Fed begins interest rate cuts tonight, cryptocurrencies could continue to underperform relative to stocks despite the looser liquidity environment.”
