BlockBeats News, March 20th: QCP released its daily market observation, stating that last night's FOMC meeting brought a long-awaited upward catalyst to the market, propelling the price of Bitcoin above $85,000 with a significant surge. The Federal Reserve decided to start scaling back its "quantitative tightening" plan from April. The market interpreted this as an indirect rate cut, reinforcing expectations that the Fed will begin its easing policy as early as June. At the time of writing this article, the market expects three rate cuts in 2025, scheduled for June, September, and December.

Aside from the current excitement, the Fed's tone was notably cautious. Policy makers revised their economic growth forecast down to 1.7% (a 0.4 percentage point decrease) while raising the inflation forecast to 2.8%, indicating rising stagflation risks. Furthermore, the Fed's dot plot showed a more hawkish shift compared to December last year, with four officials now expecting no rate cut in 2025.

In the options market, positioning has returned to normal, with skewness shifting back towards call options. This is a stark contrast to earlier this week when skewness favored put options. The key test will now come tonight at the opening of the U.S. market.