$BTC $ETH 📉Interest rate cuts lead to market downturn? Three main reasons explain the truth!
Although there was an interest rate cut today, the market weakened instead, primarily for three reasons:
1. The expectation for interest rate cuts next year has significantly diminished! Internal forecasts from the Federal Reserve indicate only one cut next year, much less than the three times the market anticipated.
2. The probability of another interest rate cut has dropped to 55%, indicating that the subsequent easing may be very limited.
3. Most importantly, Powell has clearly raised the threshold for interest rate cuts, emphasizing the independence of the Federal Reserve. Historical experience is quite alarming — after the last similar signal, interest rate cuts were paused for a full nine months!
What the market is currently worried about is not this rate cut, but that the path to future easing may suddenly narrow and slow down. Expectations have changed, and naturally, the market has become cautious.
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