According to Golden Finance, QCP Capital stated in its latest market analysis that the Fed announced a 50 basis point rate cut last night and plans to cut rates twice more this year and four times in 2025. With Powell remaining ambiguous on the size and speed of subsequent rate cuts, all eyes will be on the upcoming jobs data for clues.

The U.S. 2-year/10-year Treasury yield curve, an indicator of economic recession, has been inverted since July 2022, but recently widened to +8 basis points, reflecting market optimism and a shift toward risk assets. The S&P 500 index attempted to reach new highs but closed lower after the FOMC meeting.

On the options front, implied volatility plummeted after the FOMC meeting, with BTC dropping 19 vols and ETH dropping 18 vols. Following the FOMC, BTC rebounded from $59,000 to $62,000, while ETH traded around $2400.

QCP Capital believes that volatility is expected to surge leading up to the next FOMC meeting, just after election day.