The sharp decline in the early morning was a live lesson in market psychology.

The Federal Reserve just announced a 25 basis point rate cut, which should be a moment of celebration. But what about Bitcoin? A single long needle directly pierced the bulls' illusions, leaving countless retail investors waiting to take off stunned in front of their screens.

Why is this happening?

The answer lies in two truths that most people overlook.

**First Truth: The "Surprise" You Think You See Has Long Become a "Signal to Sell"**

Let's rewind two weeks. When expectations of a rate cut started to ferment, smart money had already quietly entered the market. They weren't here to listen to the news; they were here to "lay in wait"—raising the price to a high level before the news officially lands, then decisively cashing out the moment you rush in to buy.

This is classic "expectation game." The market never rewards those who are slow to react. When the good news finally materializes, it instead becomes the trigger for concentrated profit-taking and selling. What you hear is "liquidity is coming," but the institutions are executing "it's time to withdraw."

The waterfall drop is exactly how it happens.

**Second Truth: The True "Chill" Comes from the Future**

Pure profit-taking alone isn't enough to cause such panic-driven declines.

What truly tightens the market nerves is another signal simultaneously released by the Fed—"The pace of rate cuts may slow down in 2026."

Translated, this means: don't expect a sustained easing environment ahead. This rate cut might be the last shot of excitement for now.

Once liquidity expectations tighten, the valuation logic of risk assets collapses immediately. Bitcoin, as a highly volatile asset, naturally bears the brunt.

**In the End**

Today’s decline isn’t accidental; it’s a moment of market sentiment shifting from "frenzied betting" to "calm assessment." The rate cut has been implemented, but the story hasn't followed the script retail investors imagined.

Those who can truly survive in the market are never the ones chasing after news. It’s the veterans who can see through the time gap between "expectation and reality."

Do you understand now? Sometimes, good news is the most dangerous trap.