TechFlow news: On December 20, QCP Capital's latest analysis indicated that the Fed's hawkish FOMC meeting triggered a broad sell-off in risk assets, with the Nasdaq plunging 3.56%, the S&P 500 falling 2.95%, and Bitcoin dropping as much as 6.13%. Although markets had expected a 25 basis point rate cut, the dot plot revision sparked panic, as the Fed projected only two rate cuts in 2025 due to persistent inflation—fewer than the three cuts widely anticipated by the market.
QCP Capital believes that while it's tempting to blame this round of selling on the Fed's hawkish stance, the fundamental cause of the market downturn lies in the previously excessive market optimism. Since the U.S. election, risk assets have experienced a one-way upward trend, making the market extremely sensitive to any negative news.
