The Federal Reserve cuts interest rates, why did it drop again? Is the bull really gone?
Recently, the cryptocurrency market has been very lively, with all kinds of voices in the square,
Last night, the Federal Reserve announced a 25 basis point rate cut, which was supposed to be good news. While everyone was waiting for a rise, reality hit us hard!
The market staged a shocking reversal of 'good news turning bad', with Bitcoin soaring before plummeting. I almost couldn't hold on, my mindset falling from cloud nine to the depths of despair. What exactly is going on?
Although this rate cut met expectations, the market's reaction was quite unusual.
As soon as the news was released, Bitcoin surged to 94,000 instantly, then quickly dropped back to around 90,000. Why is that?
Ultimately, it comes down to this: the market has lost interest in rate cuts.
In terms of policy, the probability of the Federal Reserve cutting rates again in the coming months is low. They might cut once in 2026 and 2027 at most, with a very slow pace. There are intense debates within the Federal Reserve. Powell stated that rate cuts depend on employment data, and Goldman Sachs also indicated that the 'preventive rate cuts' have ended, unless the labor market deteriorates.
Without sustained 'loose monetary policy', the market lacks new funds. Retail investors are not following the trend, the main players are on the sidelines, Japan is raising interest rates, and the Christmas fund recovery is tightening liquidity. Without further good news, the market is expected to remain weak; if there is bad news, Bitcoin may break 80,000.
There are significant differences regarding this rate cut, voting was chaotic, the dot plot is contradictory, and Powell's words and actions have not had a positive effect.
Market sentiment is emotional, bullish in the long run but difficult to predict in the short term. What data will trigger the market? How should we position ourselves going forward? You can come to the chat room, and Angel will analyze the best entry points for you!
