TechFlow, May 8 — QCP Capital stated that "the Federal Reserve held the federal funds rate steady during last night's FOMC meeting and reiterated its assessment of resilient U.S. economic conditions, a tight labor market, and inflation running slightly above the 2% target. Although President Trump’s proposed new tariff plan adds uncertainty to the U.S. economic outlook, Fed Chair Jerome Powell noted that 'the cost of being patient is relatively low,' without specifying the number of potential rate cuts this year.
Meanwhile, Trump’s morning announcement of a major trade deal triggered risk-on sentiment in markets, with speculation pointing toward the United Kingdom as the likely counterpart. Fueled by this news, the crypto market reacted swiftly: Bitcoin rose 2.74%, breaking above the psychological level of $99,000, while ETH surged 6.89%, surpassing $1,900 and ending a three-week consolidation period.
In the options market, there has been a notable increase in demand for call options—particularly those expiring in May and June. This shift indicates traders are optimistic about improving macro conditions and positioning themselves for further upside.
As we head into tonight’s U.S. equity open, the focus will be on whether this rally can sustain or if it will see a typical 'buy the rumor, sell the news' pullback once the trade partner is officially confirmed.
For now, we maintain a tactically cautious stance. Until Bitcoin firmly establishes itself above the $100,000 level on the daily chart, we believe the return from chasing the current rally remains limited."
