PANews reported on May 8 that QCP Capital, a crypto investment institution in Singapore, said in a statement that, as expected, the Federal Reserve FOMC meeting last night kept interest rates unchanged as expected, reaffirming the resilience of the US economy, tight labor market and inflation slightly above the 2% target. Despite the trade tensions caused by Trump's tariff plan, Federal Reserve Chairman Powell remained cautious, saying that the cost of being patient was low, and did not specify the number of interest rate cuts this year, and the guidance was postponed to the June meeting. But the market has already priced in in advance, expecting a 25 basis point interest rate cut in July, September and December. Trump hinted at a major trade deal early this morning, triggering a wave of risk appetite, and the market speculated that the UK could be a potential trading partner. Although the statement lacked details, this prospect alone was enough to trigger fluctuations in the prices of various assets.
Crypto assets were quick to react positively. Bitcoin rose 2.74% to decisively reclaim the psychological $99,000 mark. Meanwhile, Ethereum surged 6.89% during the Asian session, breaking out of its three-week consolidation range between $1,700 and $1,900. On the options trading front, a notable increase in demand for call options was observed, especially for May and June expirations. This flow of funds suggests that optimism is growing as traders position for further upside against the improving macro backdrop. Looking ahead to the US market open tonight, all eyes will be on whether this rally can continue or whether there will be a typical “buy the rumor, sell the news” pullback following official confirmation from trading partners. For now, QCP remains tactically cautious. Until Bitcoin fails to close above $100,000 on a daily basis, we see limited gains from chasing upside at current levels.
