The Federal Reserve cuts interest rates by 25 basis points! Bitcoin plummets $500 before rebounding 🚨

Just now, the Federal Reserve announced its third rate cut of the year, by 25 basis points. As soon as the news broke, Bitcoin's price experienced extreme volatility, dropping $500 within minutes, then quickly rebounding. In the past 24 hours, BTC has fallen over $2000 from its peak.

The market is digesting the expectation of "good news has been fully priced in." While rate cuts are generally positive for liquidity, they have been priced in ahead of time, and Powell's statements about the future path have become the new focus. This explains why there was selling pressure after the news was released, with traders opting to "sell the fact."

💡 Key Insight: The traditional macro narrative's short-term impact on the crypto market is weakening. This volatility is more about emotional release at the trading level rather than a trend reversal. Attention should shift to whether funds will rotate from traditional markets to the crypto space.

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