QCP Capital: Markets Enter Cautious Holding Pattern As Fed Leadership Uncertainty And Expected Rate Cut Take Center Stage
In Brief
QCP reports that markets have moved into a cautious holding pattern, with Bitcoin stabilizing near $95,000 as investors await next week’s FOMC meeting, where futures price a high likelihood of a 25-basis-point rate cut.
Singapore-based digital asset firm QCP Capital released a market update noting that following the turbulence on Monday, markets have entered a holding pattern—stable yet tense. Bitcoin has stabilized around the mid-90,000 range after a sharp 5% rebound from the 86,000 lows, while equities and foreign exchange markets drift ahead of a relatively light data week, with political considerations adding weight to anticipation of next week’s FOMC meeting. Despite the apparent calm, markets are clearly positioning for the next major catalyst.
The focus increasingly centers on the Federal Reserve and its upcoming leadership changes. Betting markets suggest roughly an 85% probability that Kevin Hassett will become the next Federal Reserve Chair, with a formal announcement expected from Donald Trump early next year. This transition occurs at a delicate moment for monetary policy and raises questions about how new leadership may influence the Federal Reserve’s approach. With Stephen Miran exiting in January 2026, Raphael Bostic in February, and Jerome Powell stepping down in May, the composition of the FOMC could soon shift toward a more dovish stance than the market has recently anticipated.
The upcoming FOMC meeting presents additional uncertainty, as it will take place without fresh CPI or NFP data, limiting policymakers’ visibility. Futures markets currently price a 90% likelihood of a 25 basis point “insurance” rate cut next week. The focus is increasingly on governance, policy orientation, and institutional direction rather than on incremental inflation metrics.
Market concerns over short-term liquidity have eased slightly. Strategy raised approximately $1.4 billion through equity issuance, extending its operational runway to about 21 months and bringing mNAV back to roughly 1.14. Management emphasized that Bitcoin sales would only occur if mNAV falls below 1.0, helping to stabilize near-term sentiment. Nevertheless, structural overhangs remain, and the next risk event is the MSCI index eligibility review on January 15th, which could trigger volatility in Strategy-linked flows.
At present, the cryptocurrency market remains relatively stable, though the stability is tentative. With macroeconomic catalysts muted and uncertainty surrounding Federal Reserve leadership growing, digital assets appear to be in a holding pattern, awaiting clearer guidance from policymakers.
Bitcoin Climbs Above $93K As Crypto Market Cap Surges To $3.14T
At the time of writing, Bitcoin is trading at $93,068, reflecting a gain of more than 6.54% over the past 24 hours. According to CoinMarketCap, the cryptocurrency reached a low of $87,141 and a high of $93,935 during this period.
The total global cryptocurrency market capitalization stands at $3.14 trillion, marking a 6.24% increase over the previous day. In the same 24-hour period, total trading volume across the crypto market reached $172.29 billion, representing a 19.98% rise.
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About The Author
Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
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Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
