As expected! The Federal Reserve lowered interest rates as scheduled, and Bitcoin continues to decline!
As mentioned yesterday, the Federal Reserve announced a 25 basis point cut to 3.50%–3.75%. This is the third rate cut this year and is in line with market expectations. Although this signals a loosening of monetary policy, the market and funds have already priced in the rate cut in advance. Before the cut, Bitcoin attempted to break through the resistance level of $94,000 but quickly faced pressure and fell back.
Many will ask, why can a rate cut not support the market? Here are a few reasons: 1. Expectations are already priced in: The market has already accounted for the rate cut, and traders positioned themselves in advance, making the good news 'priced in beforehand'. 2. Structural risks remain: BTC has experienced significant volatility this year, and there is insufficient upward momentum at high levels. 3. Funds are more sensitive to macro rhythms: A rate cut does not immediately equate to a recovery in risk appetite.
Therefore, this rate cut has not provided sustained upward momentum and may instead become a trigger for short-term profit-taking. In other words—expecting a rise, but upon implementation, there is no increase and may even continue to decline. Risks remain, so the direction is still uncertain.
As for suggestions, cautious individuals should observe for confirmation, while aggressive individuals should be aware of the risks! Risks, risks!
