đ¨ WHY DID THE MARKET DUMP AFTER A BULLISH FED FOMC?
Bitcoin has now erased the entire pre-FOMC pump within 12 hours â but the reasons are deeper than they seem.
Hereâs exactly what happened:
1ď¸âŁ Front-Running Pump
The 25 bps rate cut wasnât a surprise. Odds were already at 95%, and large traders positioned early last week expecting liquidity support. When the Fed finally confirmed the cut and $40B in T-bill purchases, whales took profits immediately. This triggered the first leg of the sell-off.
2ď¸âŁ Uncertainty From Powell
Powell mentioned a weaker labor market and inflation still being too high.
The Fedâs dot plot also signaled the possibility of only one rate cut in 2026, which the market viewed as slightly hawkish.
As soon as the US market closed, the real dump accelerated.
3ď¸âŁ Oracle Earnings Shock
Oracleâs Q2 earnings missed expectations, and CAPEX guidance jumped.
The stock fell 11â12% after hours, dragging US futures down.
This triggered fear that the AI boom might be peaking, causing a broad tech risk-off move â which quickly spilled into crypto.
All these factors hit together:
⢠Rate cut already priced in
⢠Liquidity trades front-run
⢠Powell didnât strongly signal easing
⢠Oracleâs earnings spooked tech markets
⢠Whales started taking profits
đ But the bigger picture remains bullish:
⢠Fed has cut rates 3 straight meetings
⢠$40B T-bill purchases incoming
⢠More liquidity likely ahead
⢠No Fed member expects a rate hike
⢠Softer labor market gives room for more easing
The dump came from overheated expectations, not bearish fundamentals.
2026 still looks far more liquidity-friendly â and the market hasnât priced that in yet.




