QCP: Market Focused on This Week's Fed Meeting, Bitcoin Experiences Year-End Liquidity Crunch and Severe Volatility

BlockBeats News, December 8th. QCP released its daily market observation, stating that on Sunday, BTC experienced intense volatility in the $88,000 to $92,000 range, while ETH quickly surged from $2,910 to $3,150. As year-end liquidity continues to decline, the market has become particularly sensitive to small fund flows.

However, despite the strong oscillation, the liquidation scale remains small, indicating that market participation and positions have been declining this quarter. The open interest of the two major asset perpetual contracts has dropped 40–50% from the October high, and retail sentiment has returned to bear market levels.

Meanwhile, the supply side is significantly tightening. Around 25,000 BTC have been withdrawn from exchanges in the past two weeks, ETF and corporate holdings have exceeded exchange balances for the first time, and ETH exchange reserves have also dropped to nearly a decade low, indicating that institutional funds are quietly accumulating when retail investors are exiting.

The market focus is now on Wednesday's FOMC meeting. Although the market generally expects a 25bp rate cut, the balance sheet guidance will determine the year-end direction of risk assets. Currently, BTC is still oscillating between $84,000 and $100,000, with market depth continuously deteriorating. As the year-end holidays approach, any breakthrough on either side could trigger the next major trend.