Despite the Federal Reserve's announcement of a 25 basis point interest rate cut, this decision has not acted as a catalyst for the encryption market as expected. Instead, the price of Bitcoin (BTC) experienced an unexpected fall, hitting a low of $122,000 at one point. This seemingly contradictory market reaction is, in fact, the result of multiple factors working together.

First of all, the market has already reacted to the expectation of interest rate cuts. Before the release of the Federal Reserve's meeting minutes, Bitcoin had already experienced a significant rise, with a cumulative increase of over 12%. This behavior of digesting positive news in advance aligns with the common financial market logic of "buy the expectation, sell the fact". When the interest rate cut was officially implemented, the lack of new capital entering the market instead triggered profit-taking pressure.

Secondly, the economic concerns hidden behind the interest rate cut decision have also affected market sentiment. The Federal Reserve's interest rate cut measures are not merely a loosening policy, but may also imply worries about the economic outlook. Issues such as the deterioration of the labor market mentioned in the meeting have raised investors' vigilance regarding the risks of economic downturn. If the interest rate cut is seen as a passive response to economic recession, its stimulating effect may be offset by growth concerns.

As a high-risk asset, cryptocurrencies are often the first to be affected during times of increasing economic uncertainty. Investors may choose to move their funds to safer haven assets, putting pressure on the cryptocurrency market.

In addition, technical factors cannot be ignored. The price of Bitcoin has approached an important resistance level during the previous rise, and the demand for technical adjustments, combined with macro factors, has further intensified the strength of the pullback.

In summary, the fall of Bitcoin after the Federal Reserve's interest rate cut is actually the result of a combination of market expectations, economic signals, and technical patterns. This phenomenon reminds investors that when interpreting market trends, it is essential to consider various factors comprehensively, rather than relying solely on a single positive news.