2025-12-11 00:26:08

Interest rate cut of 25 basis points implemented, why did ETH and mainstream coins instead plummet?

The Federal Reserve just announced a rate cut, and the crypto market should have celebrated wildly. Instead, BTC hit a high and started to give back gains, while ETH and a bunch of altcoins collectively stalled. Wall Street's faces turned green, and Trump directly criticized it as "too small a move." What's really going on here?

First, the conclusion: this rate cut is not well received by the market at all.

The problem lies in Powell’s "speech trap" — he announced the rate cut while emphasizing that "economic fundamentals haven't changed much." Translate that to mean: don’t expect continued easing. The market was holding its breath for a "loose cycle," but now it suddenly sees the tap being turned off after just a brief drip, causing the previously bullish expectations to collapse instantly.

This is a classic case of "two ends not satisfying" — Trump feels the cut wasn’t aggressive enough, while crypto traders realize there’s no sustained positive outlook. Capital quickly becomes cautious. The rate cut, wrapped in hawkish language, explains why the market couldn’t rally.

Why did prices fall after the news was announced?
Experienced traders know — "buy the rumor, sell the fact" always works. The recent rally was driven by the expectation of "continued easing." Now that the move has materialized, profit-taking kicks in, and bullish investors wake up to the reality that high interest rates might persist long-term. How long can the high valuations of risk assets last? The willingness of funds to enter the market naturally cools.

In summary: this rate cut is more of a risk alert than a rallying call. Macroeconomic uncertainties remain, and the crypto market needs to find a new direction. Whether the bull or bear phase continues depends on whether investors dare to keep betting in this fog.

ETH0,62%

BTC0,11%

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AirdropJunkie

· 2025-12-13 02:43

It's another case of buy the rumor, sell the fact. The tactics are really many. Powell's face, lowering interest rates while saying nothing has changed, who would believe it? Honestly, a bit disappointed. I thought there might be another crazy wave. This is called "promising to stay with me until dawn, but turning off the lights before dawn." They open the faucet just a little and then want to turn it off, no wonder everyone is silent. It feels like a rate cut, but more like a preventive measure. What's going on? The market just played itself into confusion. The moment the shoe drops, will there be a reaction or not? I've seen this script too many times. Hawkish rate cuts are outrageous, no wonder cryptocurrencies are stagnant. So now, is it wait and see, or bottom-fishing? What do you all think?

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MetaNomad

· 2025-12-12 22:37

It's the same old story of buying expectations and selling facts, the classic routine haha It's just ridiculous. Powell's one statement that "the fundamentals haven't changed" immediately breaks the game, and the market reacts super quickly Still the same point: good news but poor fundamentals, everything is pointless If high interest rates persist long-term, how can risk assets sustain? Do we still have to keep speculating? It feels like next, funds will be gambling in the fog—who dares to take the risk wins Wait, is the hawkish shell hiding a rate cut? That logic is indeed incredible

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MissedAirdropBro

· 2025-12-11 00:56

It's another case of buying the rumor, selling the fact. This move is truly top-notch. Who would buy into dovish rate cuts? No wonder BTC dropped directly. Got trapped again. Should have known not to chase the high. It's really a lose-lose situation; neither Trump nor the crypto community is satisfied. The faucet was turned on briefly and then shut off. I’m familiar with this routine. Profit-taking has fled. No wonder the market went silent collectively. Rate cuts turned into a risk warning. This reversal was too quick. It's just the expectation being shattered. Is there still any surprise afterward? The current market is just brain-burning. Who dares to buy the dip?

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LightningPacketLoss

· 2025-12-11 00:55

It's the old trick of buying the rumor and selling the news again. This time really left me speechless. Powell's mouth is a master of rhetoric—if he says he's going to cut rates, he's going to cut rates. Stop the fancy brainwashing. I was amused when Trump went on a rampage. Wall Street really went green this time. All the funds have fled, and that's the most heartbreaking part. Turning the faucet on just to shut it off? That's hilarious. As expected, no sustained positive news.

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zkProofGremlin

· 2025-12-11 00:38

Once again, it's the old trick of buying the anticipation and selling the fact. This time, Powell has caught us completely.

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LiquidatedTwice

· 2025-12-11 00:32

It's another classic trick of "all the good news is already priced in, and only bad news remains," the pattern is really so deep.

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