⚠️ATTENTION⚠️
THE FED CUT RATES AND ANNOUNCED BOND PURCHASES… SO WHY IS #BITCOIN FALLING (AT LEAST FOR NOW)⁉️
-I explain the 3 reasons for the correction, and why the CONTEXT REMAINS POSITIVE👇
🔹 1. “BUY the RUMOR, sell the NEWS”
▪️95% of the market ALREADY expected the cut
▪️Institutional traders anticipated it last week and pushed asset prices UP BEFORE the rate decision
▪️When the news arrived, they simply took profits
🔹 2. Powell did not give a clear signal for more cuts
▪️Although they lowered the rate, they projected only 1 cut in ALL of 2026, while futures expect 2
▪️This created uncertainty about the future of the cuts
🔹 3. Results from the AI company "Oracle"
▪️Reported results after the close with a decline in revenue and high expenses
▪️The market read this as a possible signal of “DECLINE of the AI boom”
-In summary:
▪️The rate cut was already priced in
▪️The liquidity flows from bond purchases have not yet impacted
▪️Traders reacted in the short term
📍 But the structural outlook did not change:
📍 2 consecutive rate cuts + $40,000M in T-Bill purchases in 30 days + Powell ruled out rate hikes + Economic growth and stimulus expected in 2026 + Weaker labor market = more room to cut.
#USChinaDeal #FOMCWatch #bitcoin #BTC #FedNews
