On the morning of the 11th at 3 o'clock, Federal Reserve Chairman Powell pressed the button that the market had long priced in: a 25 basis point rate cut.
The subsequent plot should have unfolded according to the script of the crypto market: the liquidity floodgates opened, the US dollar index plummeted, and Bitcoin surged towards the $100,000 mark. In fact, the first 15 minutes played out exactly like that—with Bitcoin violently soaring to $94,476, and the alerts for liquidated short positions ringing out across the network.
However, the revelry lasted less than an hour. As Wall Street traders parsed the Federal Open Market Committee (FOMC) statement and the Summary of Economic Projections (SEP) line by line, market sentiment underwent a dramatic reversal. Bitcoin not only gave back all its gains but also declined to $91,384 in the following hours, forming a standard 'inverted V' shape.
