The Federal Reserve's interest rate cut of 25 basis points is a very significant step. Although it was anticipated by the markets, the market's reaction varies depending on the details that came out in the conference and future expectations (Dot Plot – Powell's tone).

What does the reduction mean for the market now?

Here are the most common effects in a precise and detailed manner:

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First: cryptocurrencies

Digital currencies usually benefit from rate cuts because they are high-risk assets.

But: since the cut was anticipated, we may see:

Fast movement and strong speculation in the first hour.

Then a correction if Powell's tone is not dovish enough.

Watch:

BTC – ETH as the market leader.

Dominance movement.

Liquidity on small timeframes.

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Second: Gold

Gold often rises with a cut due to a weak dollar.

Expectation:

Initial surge.

Then fluctuate according to Powell's statements.

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Third: Dollar and indicators

The dollar DXY may drop if the conference has a dovish tone.

US stocks tend to rise with a cut, but:

If the forecasts indicate only one cut this year → limited movement.

If it indicates several cuts → bullish explosion.

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Fourth: Trading cautiously is very important

Reason:

The first 15–30 minutes are illogical movement (Stop Hunt).

Liquidity manipulates open positions before the real direction.

The best trading style now

1. Do not enter before the end of the talk by 10–15 minutes.

2. Watch the direction of the first large candle on the 5-minute frame.

3. Wait for a retest of the area from which the movement started.

4. Enter only with the clear direction.