【Why did the market fall after the Federal Reserve cut interest rates? Understand this operation and don't be a pawn!】

Only when the tide goes out do you see who is swimming naked; only when policies are implemented can you see who is 'holding firm'.

The Federal Reserve cut interest rates by 25 basis points today, bringing the rate down to 3.75%-4%, and also announced the end of balance sheet reduction in December. On the surface, it's a monetary easing, but internally there was a heated debate—two dissenters, one thinks the cut is too small, and the other simply doesn't want a cut! This indicates that even they are uncertain about the economic outlook.

Why did the market fall despite positive data?

1. Expectations were too high: The rate cut had been 'overdrawn' by the market in advance, and the actual implementation turned out to be a sell-the-news scenario.

2. Division hides risks: The internal split at the top suggests the economy may be worse than expected, raising risk aversion among investors.

3. Inflation remains a thorn: The statement emphasized that 'inflation remains high', indicating limited room for further rate cuts, which doused the market's enthusiasm.

Impact on the cryptocurrency market:

Short-term liquidity expectations support cryptocurrency prices, but economic uncertainty will suppress risk assets. BTC and mainstream coins may experience increased volatility, while altcoins are more likely to be sold off.

What should retail investors do?

· Don't chase highs! Positive news often turns out to be a trap.

· Keep cash on hand and buy quality assets during market panic.

· Pay attention to the Federal Reserve's subsequent statements; if the policy direction changes, adjust your positions immediately.

The market is always changing, but the logic remains the same—want to keep up with the rhythm? Like and follow, and Lao Hu will teach you how to predict bull and bear markets using the 'interest rate cycle'! #美联储降息预期 #加密市场回调