May 8, 18:25 Thursday

Before the Bitcoin daily closing price breaks $100,000, the current level has limited momentum chasing returns.

According to news from CoinWorld, on May 8, QCP released its daily market observation stating that, as expected, last night's FOMC meeting did not bring many surprises. The Federal Reserve kept the federal funds rate unchanged and reiterated its consistent statement: the U.S. economy is resilient, the labor market is tight, and the inflation rate remains slightly above the 2% target. Although President Trump’s proposed tariff plan has reignited trade tensions, bringing new uncertainties to the U.S. economic outlook, Fed Chairman Powell remains cautious and calm. He reiterated that 'the cost of waiting patiently is quite low,' indicating there is no urgency to cut interest rates. Importantly, Powell did not commit to the possible number of rate cuts this year but postponed that guidance to the June FOMC meeting. However, the market did not wait. The current pricing reflects expectations for three 25 basis point cuts in July, September, and December. This morning, President Trump sparked a wave of risk appetite by previewing a major trade agreement, with market speculation that the UK might be the trading partner. Although the announcement lacked details, just this prospect was enough to trigger price fluctuations across various assets. Cryptocurrency assets responded quickly and positively. Bitcoin rose 2.74%, decisively reclaiming the psychological level of $99,000. Meanwhile, Ethereum surged 6.89% during the Asian session, breaking through the consolidation range of $1,700 to $1,900 that had lasted for the past three weeks. At the options trading desk, there has been a noticeable increase in demand for call options, especially for options expiring in May and June. This flow of capital indicates that as the macro environment improves, traders' optimism for further increases is strengthening. As we enter tonight's U.S. market opening, all eyes will be on whether this rebound can be sustained, or if, once trading partners are formally confirmed, it will face the typical 'buy the rumor, sell the news' pullback risk. Currently, we maintain tactical caution. Before the Bitcoin daily closing price breaks $100,000, we believe that chasing momentum returns at the current level is limited.