Fed Rate Cut But Underwhelming & Cautious Tone
The U.S. Federal Reserve recently cut interest rates by 25 basis points. But the market expected more easing. Powell emphasized that this was a “risk-management cut,” which made investors nervous — because it suggests the Fed may not cut aggressively in the future.
Leverage & Liquidations
After the Fed decision, many had piled in speculative bets assuming more rate cuts, higher growth. Because price didn’t explode upward, those long positions (bets that price goes up) got squeezed. That triggered liquidations which feed into further price declines.
Profit-Taking
Bitcoin and major altcoins had run up ahead of the Fed move. Some traders saw reasonable highs and decided to lock in gains. When enough people do this, it adds downward pressure.
Token Unlocks & Excess Liquidity Worries
Some large token unlocks are scheduled, adding supply and temptation to sell among investors. Also, the market already priced in much of the rate cut, so the “good news” was partly baked in; when that happens, news doesn’t spark rallies, it triggers disappointment.
Strong U.S. Dollar & Macro Risks
Dollar strength or expectations of it can pull capital away from risk assets like crypto, reducing inflows. Also, global macro issues (geopolitical risks, regulatory concerns) weigh on investor sentiment.
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