Last night, the Federal Reserve announced a 25 basis point rate cut as expected. This should have been good news for risk assets like Bitcoin and Ethereum, but both cryptocurrencies fell in response, leaving many people confused: where is the promised liquidity easing?

Why does the market show such counterintuitive movements? There are two key logical reasons behind this.

**First, there is a split between the rate cut action and the actual attitude.** Powell emphasized at the press conference that "the economic fundamentals remain solid," implying that we shouldn't expect the Fed to flood the market with liquidity. The significance of the rate cut is more symbolic than practical; the shift in monetary policy is far less aggressive than market expectations. This "rate cut but no flood" approach has instead caused investors to worry that high interest rates will persist longer.

**Second, expectations have been pre-absorbed, turning favorable news into a negative.** In the past few weeks, the market had already priced in a rate cut expectation, and cryptocurrency prices reacted early. When the news actually materialized, profit-taking investors chose to exit, exemplifying the classic "buy the rumor, sell the fact." A deeper issue is that if high interest rates persist, the valuation logic for risk assets will continue to be squeezed.

From this market reaction, macro-level uncertainties have not yet dissipated. The next trend may rely more on subtle changes in actual economic data and policy signals rather than a single event stimulus.

In terms of operations, now is not the time for blind bottom-fishing. In an environment of increased volatility, maintaining flexible positions and waiting for new directional signals is more prudent. Are you choosing to stay on the sidelines or to buy the dip now?