It only takes 3 minutes to explain why the Federal Reserve's rate cut caused Bitcoin to fall instead of rise, turning it into a trap.

Many people were confused when they checked the market this morning. Clearly, everyone was saying that the Federal Reserve had cut rates, but Bitcoin not only didn't rise, it suddenly dropped sharply. Is it fake news?

Don't panic. Break down those complicated financial terms, and you'll see that what appears to be good news is actually a trap.

1. The so-called good news is nothing new
The Fed cut rates by 25 basis points this time, bringing the interest rate to 3.50%-3.75%.
Basically, it's like you scored 60 on a test, and your dad promised to buy you a gaming console last month. Now that he’s buying it today, you’re not surprised because you already knew.
In the crypto world, it's the same. Everyone had already guessed that the rate cut would be this much. Informed investors bought in advance two weeks ago, waiting. When the news was announced today, the good news was fulfilled, and these people sold for profit and exited. That’s a sell-off, causing the price to drop naturally.

2. The outlook for good market conditions in the future is shattered—that's the real reason for the big drop
The report said 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 keep pumping money, leading to a bull market in crypto.
But Fed Chair Powell directly said that there won’t be so many rate cuts next year, maybe just one.
Since there won’t be much money released next year, liquidity remains tight. The anticipated bull market is gone, and people who bought heavily are rushing to sell and exit.

3. Internal disagreements within the Fed, more opponents to rate cuts
This time, three members opposed the rate cut, and some even thought it shouldn’t be cut.
In the past, everyone agreed on rate cuts, but now three key figures oppose it, indicating internal concerns about inflation rising again (especially with Trump potentially returning to power, policy impacts are possible).
For Bitcoin, as long as someone says not to print more money, there’s a risk. People fear that after this rate cut, there might not be any more soon.

Summary of why it fell:
Simply put, everyone was hoping for a continuous easing cycle to boost the market. But it turns out there will only be one rate cut next year, and internal disagreements are brewing.
The market isn’t afraid of bad news; it’s afraid when the actual situation is worse than expected. This rate cut looks good on the surface, but future expectations are gone, so Bitcoin drops.