When the Federal Reserve Chair speaks, Bitcoin drops by 5,000 points instantly, and the 90,000 level is immediately broken—how many people were caught off guard by this move?

First, on the policy side: the Fed cut interest rates by 25 basis points as scheduled, bringing the federal funds rate to the 3.5%-3.75% range, marking the third cut this year. The signals revealed at the meeting are even more critical: recent inflation data have risen to 2.8%, with Powell attributing the increase to tariffs; excluding this impact, actual inflation is approaching the 2% target. The employment market is clearly weakening, with the unemployment rate rising to 4.4%, and it is expected to reach 4.5% next year.

But what really triggered the market was that one statement—2026 might see only one rate cut. This pace is much slower than Wall Street expected, and the "data-driven" stance directly dashed hawkish hopes.

Of course, rate cuts are generally positive, but the hint of "only one" rate cut put the bulls on the ropes. Within an hour of the announcement, Bitcoin plummeted from $92,000 to $88,000, with over $400 million in liquidations across the network, exemplifying a typical "good news exhausted" pattern. Short-term sentiment collapsed thoroughly, and high-leverage traders were almost wiped out.

However, looking calmly, the medium-term logic isn't completely broken. The rate cut cycle is still ongoing, and quantitative tightening(QTT) has already paused, so liquidity fundamentals remain solid. The market just needs time to digest the differing expectations.

What about the future? In the short term, Bitcoin is likely to fluctuate between 85k and 88k, and if support can't hold, look for 80k-82k. Don't expect big moves before Christmas. In the medium term, there’s a chance to challenge 95k-100k again in January-March, as Trump’s tax cuts and crypto-friendly policies might rekindle bullish enthusiasm. Long-term, the bull market wave is not over; new highs in 2026 are quite possible, but there will definitely be several 20-30% deep corrections along the way.

For those trading contracts, be cautious—don't try to hold long-term through this, and more prudent to trade swing positions. Last night’s move was just a scare, not overreaction. The bull is still here; buckle up and keep going.