QCP Capital: The fundamental reason for the big dump in the market is the market's excessive bullish positioning.

Golden Finance reported that QCP Capital posted on its official channel that the hawkish FOMC triggered a sharp drop in all risk assets. Nasdaq had a big dump of 3.56%, the S&P 500 index dropped 2.95%, and BTC dropped 6.13%. Although the 25 basis point rate cut by the Fed met expectations, the root of the panic can be attributed to the downgrading of the dot plot. Due to persistent inflation, the Fed now expects 2 rate cuts in 2025, while the market generally expects 3 rate cuts. BTC dropped to a daily low of $98,800 during the Asian trading session, with several altcoins falling by at least 10%. The market liquidated long positions worth $258.6 million. While it's easy to attribute the sell-off to the Fed's hawkish rate cut, we believe the fundamental reason for this morning's crash is the market's overzealous bullish positioning. Since the election, risk assets have experienced an impressive one-way rally, making the market highly vulnerable to any shocks.