Boom! The Federal Reserve cuts interest rates by 25 basis points, is the bull market really over?
The shoe has finally dropped! Last night, the Federal Reserve cut rates by another 25 basis points, completely in line with our previous predictions. Once the rate cut news was announced, the market moved as we expected; it surged initially and then fell.
Speaking of Bitcoin, as soon as Powell finished speaking, it skyrocketed to 94,000, but it only lasted for a short while and has now dropped back to around 90,000. What does this mean? It's obvious that the market has lost its excitement for this rate cut, like eating a bowl of food that has long gone cold, it has no flavor.
Next, don't expect the Federal Reserve to generously "inject money" again. The Fed's dot plot clearly shows that they will only cut rates once at most in 2026 and 2027, and this rate cut pace is as slow as squeezing toothpaste. Moreover, there is still a lot of internal conflict within the Federal Reserve; some are worried about inflation coming back, while others fear rising unemployment rates. Powell is caught in the middle, and he even mentioned that future rate cuts will depend on employment data. Goldman Sachs has been more direct, stating that "preventive rate cuts" have already ended, and any further rate cuts would only happen if labor market data worsens.
A real bull market relies on continuous "liquidity injection," but with the Fed's stingy rate cuts, where will the new funds come from? Just look at the data; retail investors are no longer following the trend and have been attracted to gold and silver instead, while some have been scared off by previous market declines. Major funds are also very cautious and dare not act easily.
My view is clear: don’t act impulsively in a moment of excitement! Right now, Bitcoin is in a period of volatile adjustment, with ups and downs being the norm. If you want to buy at the bottom, that's fine, but you must do it in batches, and be prepared for it to continue bottoming out or even drop further.
In summary: the news has landed, and the good news has already been digested. The real market direction will depend on the next key data release. Until then, everyone should observe more and operate less, keeping their hands steady.
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