Last night, the Federal Reserve announced a 25 basis point interest rate cut. I thought Bitcoin would take off, but instead... it plummeted from $93,000 directly to $87,000. The current price is $87,530. Are you frustrated?

What exactly happened?

Before the interest rate cut news came out, BTC was quite bullish, once surging to around $94,000. Everyone was shouting "Good news! The bull market continues!" But then Powell concluded the press conference with a big surprise—he said there would only be two more rate cuts in 2026, which is much less than the market expected. The bulls were instantly dumbfounded, and sell orders surged like a flood.

From a technical perspective, BTC's 1-hour RSI is only 52.5, which is an awkward position of being neither here nor there. The 4-hour and daily RSI are both in the 40s, clearly indicating weakness. The key support is at $86,000 (if it breaks, it may head straight for the 80,000 mark), with resistance around $88,400.

On-chain data reveals the truth.

Interestingly, although the price has dropped, the BTC reserves at exchanges have been declining! From 2.82 million coins in November to now 2.76 million coins, indicating that someone is secretly transferring coins out to hoard. More impressively, Michael Saylor from MicroStrategy bought another 10,645 BTC last week, at an average price of $92,098, spending nearly $1 billion. This guy really dares to bet.

The futures market is getting a bit nervous, with the open interest dropping by 3.73% in 24 hours. Although the funding rate is still positive (the bulls are still paying the bears), it has dropped to a very low level, indicating that the bulls are hesitant to increase their positions.