The interest rate cut of 25 basis points has landed, why did ETH and mainstream coins instead plunge?

The Federal Reserve just announced the interest rate cut, and the crypto market should have been celebrating, but BTC peaked and then started to retreat, while ETH, along with a host of altcoins, collectively went silent. Wall Street was left in disbelief, and Trump directly criticized, saying, 'The cut is too small.' What exactly is going on here?

First, let's state the conclusion: the market is not buying this interest rate cut at all.

The issue lies in Powell's 'verbal trap'—he announced the rate cut while emphasizing that 'the economic fundamentals haven't changed much.' Translated, this means: don't expect further easing. Initially, the market was holding its breath for a 'easing cycle', only to suddenly realize that the tap was turned on briefly and then shut off, causing the previously inflated expectations to collapse instantly.

This is a classic case of 'neither side pleased': Trump thinks the cut wasn't decisive enough, and crypto players find no sustained positive news, leading to an immediate rise in cautious sentiment. The interest rate cut policy wrapped in a hawkish shell, so it's no wonder the market couldn't move.

Why did the news trigger a drop instead?

Veteran investors understand—'buy the expectation, sell the fact' always works. The previous surge was driven by the imagination of 'continuous easing'. Now that the shoe has dropped, profit-takers are retreating, and the bulls have awakened to the realization that high-interest rates may persist for a long time; how long can the high valuation of risk assets hold? Naturally, the willingness for capital to enter has cooled down.

To summarize: this interest rate cut is not a call to arms, but more like a risk alert. The macro-level uncertainties remain, and the crypto market needs to find its direction again. How the bulls and bears will move next depends on whether capital dares to continue betting in the fog. $BTC $ETH