Last night, the Federal Reserve cut interest rates by 25 basis points as expected, which was already priced into the market. After the rate cut announcement, the market initially rallied, then? Should it fall or keep falling?

Bitcoin's performance is quite interesting—right after Powell spoke, the price shot up to $94,000, but not long after, it slid back to hover around $90,000. What does this indicate? It suggests that this rate cut was fully digested by the market in advance. Is it good news? The benefits? They have already been realized.

Looking ahead, the Fed won't be as generous as before. Their latest dot plot shows at most one rate cut in 2026 and 2027 each, a pace so slow it’s frustrating. Even more concerning is the internal disagreement within the Fed: some worry about a resurgence of inflation, others fear a spike in unemployment. Powell himself said that future actions will mainly depend on employment data. Goldman Sachs is more direct—preemptive rate cuts are basically over, unless labor market data significantly worsens, don’t expect major moves.

So, if you hear about rate cuts and think a bull market is coming? Wake up. A true bull market requires sustained monetary easing. With the Fed so cautious now, where will the market get that additional capital? Just look at recent capital flows: retail investors have been diverted to gold and silver, or scared off by previous crashes, and main funds are also on hold.

My simple view: don’t be impulsive at this stage. Bitcoin is in a period of consolidation; fluctuations are normal. You can try to buy the dip, but remember to enter in batches and be mentally prepared for continued volatility or even another dip. Those leveraging heavily and going all-in to turn things around—be careful, you might get shaken out in the next wave.

In summary: the benefits of rate cuts have been fully priced in, and the true market direction depends on the next key data release. Until then, observe more and act less—don’t mess around with your principal blindly.