BTC has fallen below $90,000, and the rate cut brings good news to an end, a classic performance.
In the early hours of today, the Federal Reserve announced as expected that it would lower the target range for the federal funds rate by 25 basis points to 3.50%–3.75%. This is the third rate cut of the year and marks the end of 2025.
A total of 75 basis points have been cut throughout the year. However, the anticipated 'dovish tone' did not appear, replaced instead by a heavy atmosphere of caution.
The most striking aspect is the strong divergence revealed by the dot plot and the post-meeting statement: among the 19 officials, 7 voted against, setting a record since Powell took office in 2018; 6 of them clearly preferred to 'stay put' in December; the median rate forecasts for 2026 and 2027 are completely in line with September, indicating that there is a high probability of only one rate cut each year (i.e., 2 cuts of 25bp) in the next two years, far below the market's previous expectation of 'continued easing'.
I remain optimistic about the future market; I will continue to buy in batches every time there is a drop. Bitcoin will definitely reach $200,000 each! $BTC
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