In 3 minutes, I'll explain why the Federal Reserve's rate cut caused Bitcoin to fall instead and became a trap.

Many people were confused when they checked the market this morning. Clearly, it was widely announced that the Federal Reserve had cut interest rates, but Bitcoin not only didn't rise, it suddenly plummeted. Could it be false news?

Don't panic. Break down those confusing financial terms, and you'll see that what looks like good news is actually a trap.

1. The so-called positive news is no longer new
The Federal Reserve cut by 25 basis points this time, bringing the interest rate to 3.50%-3.75%.
In simple terms, it's like you scored 60 on an exam, and your dad already promised to buy you a gaming console last month. Today, he actually bought it, but you're not surprised because you already knew.
In the crypto world, it's the same. Everyone had already guessed a significant rate cut, and savvy investors had bought in half a month ago, waiting for the news. When the news was announced today and the positive expectations materialized, these investors sold to take profits, causing a sell-off and a drop in prices.

2. The promising outlook for the future has been dashed, and this is the key reason for the big drop
The announced plan states that by 2026, there will likely be only one rate cut.
This is the most critical point! Previously, everyone thought the Fed would keep cutting rates next year and flood the market with money, leading to a bull run in the crypto space.
But Fed Chair Powell directly said that there won't be many rate cuts next year, maybe just one.
Since there won't be much monetary easing next year and money remains tight, the previously anticipated bull market is now out of sight. People who bought in heavily are rushing to sell and exit.

3. Internal disagreements within the Federal Reserve, with more people opposing rate cuts
This time, three members voted against the rate cut, and some even believed it shouldn't be cut at all.
In the past, everyone agreed on rate cuts, but now three key figures oppose it, indicating concerns about rising inflation again (especially with Trump potentially returning to power, which could influence policies).
For Bitcoin, as long as someone warns against excessive money printing, there is risk. People fear that after this rate cut, there might be no further cuts in the near term.

Summary of why it fell:
Simply put, everyone was hoping for a continuous easing environment, but it turns out there will only be one rate cut next year, and internal disagreements within the Fed have emerged.
The market isn't afraid of bad news; it fears that the actual situation will be worse than expected. This rate cut looks good on the surface, but future expectations are gone, which is why Bitcoin has fallen.