Early morning rate cut announcement, more like a suspense thriller than expected.

The Federal Reserve announced a 25 basis point rate cut, causing Bitcoin and Ethereum candlestick charts to fluctuate violently—both upward and downward movements completed within minutes. Wall Street traders exploded on social media, and even former President Trump couldn’t help but speak out with doubts. Where are the promised positive signals? Why does the market react as if it’s been hit with a punch?

The problem lies in the "substance" of this rate cut.

On the surface, the Fed did cut rates. But Powell’s wording was a textbook example of hawkish disguise: "The current economic performance is strong, and this adjustment is not the start of a series of measures." Translated, it means—don’t expect more sweeteners to come. The market was instantly awakened from its "easy cycle illusion," with liquidity expectations being dashed by a single sentence.

More subtle is the reaction from various parties. Politicians are dissatisfied, believing the move is insufficient; institutional investors didn’t cheer either, as they had already priced in the rate cut expectations. This "policy gift package" is like overnight leftovers wrapped in plastic wrap—it looks okay, but tastes bland. Rates are cut, but it feels like nothing has changed; waiting only leads to deeper disappointment.

Where is the core contradiction?

The answer lies in the failure of "expectation management." The recent rally over the past few weeks was essentially the market overdrawing on the easing narrative. When the actual move happened, profit-taking kicked in, and new funds, seeing no sequel to the "story," naturally hesitated to jump in. More critically, if high interest rates become the norm, the narrative logic of crypto assets will need to be re-evaluated—this is the real source of unease.

This rate cut isn’t a fuel station for a bull market; it’s more like a stress test on market faith. Every subsequent fluctuation will verify one question: when macro narratives are no longer perfect, how resilient is the crypto world?