🔥 Interest rate cut implemented, is the market selling off? This script is different this time!
Last night, the Federal Reserve cut rates by another 25 basis points, but BTC and ETH showed a “buy the rumor, sell the news” type of fluctuation. Wall Street and Trump criticized simultaneously, and market sentiment cooled instantly—lowering interest rates is no longer a stimulant, but rather a sobering medicine for bulls.
⚠️ Why has “lowering interest rates” become a “negative”?
1️⃣ Expectations were fully priced in, but the reality fell short of expectations.
The market had already priced in “continuous rate cuts,” but Powell hinted at a “possible pause,” shattering the dovish fantasies. The faucet is only slightly opened, and it may close again later, so funds are hesitant to go all-in.
2️⃣ Macroeconomic uncertainties increase, and funds choose to wait and see.
Rate cuts were originally meant to boost the economy, but the statements revealed concerns about inflation. The future path is uncertain, and the high valuations of risk assets appear fragile.
📉 Cryptocurrency market reaction: Buy expectations, sell facts
· Before the rate cut, the focus was on the “easy monetary narrative”; after the cut, attention shifted to “how long can we maintain easy monetary policy?”
· Some profit-takers seized the opportunity to cash out, waiting for clearer signals.
🚀 In the short-term volatility, where are the opportunities?
1. Meme season quietly returns
In a low Gas environment, the popularity of Meme coins on the Ethereum chain has surged again, especially tokens associated with Elon Musk concepts (like P UP P IES) showing strong short-term explosive potential. With light chips and aggressive pumps, they have become the target direction for risk-seeking capital.
2. Pay attention to layout points during the “rate cut digestion period”
If BTC can hold key support (such as $90,000–$92,000), gradual positioning is still better than chasing highs.
The ETH ecosystem and Layer2 sectors have increased activity in a low Gas environment, likely to attract capital rotation.
💎 Summary:
This rate cut is not the end, but a signal of mid-game adjustment. The market needs time to reassess liquidity prospects, and high volatility will become the new normal. Be cautious of chasing highs, but pay attention to opportunities that arise from declines—especially in narratives that are strong and chips that are light.
👇 What do you think? Is the market waiting for the next catalyst, or has it entered an adjustment phase?
