When the policy is finally implemented, the real reaction of the market will become apparent.

The Federal Reserve today implemented a 25 basis point rate cut as expected, adjusting the target range for the federal funds rate to 3.75%-4.00%, while also announcing the end of its balance sheet reduction plan in December. On the surface, this appears to be an easing policy; however, there are significant divisions within the Federal Reserve—two committee members voted against it, one believed the rate cut was insufficient, and another firmly opposed this rate cut action. This fully reflects the decision-makers' confusion and cautious attitude towards the economic outlook.
In the face of this theoretically favorable policy, why is the market showing a downward trend instead? The main reasons are three:
Firstly, the market has long anticipated the interest rate cut. The 25 basis point reduction had been widely predicted and reflected in prices before the announcement, in line with the market rule of "buy the rumor, sell the news," prompting some investors to choose to take profits.
Secondly, the serious divisions within the Federal Reserve send dangerous signals. The inconsistencies among decision-makers may suggest that the actual economic situation is more complex and fragile than the official data indicates, leading to a rapid spread of risk aversion.
Thirdly, the inflation issue remains a constraint on policy. The policy statement repeatedly mentions that "inflation remains high," indicating that there may be limited room for future interest rate cuts, breaking the market's expectations for continued accommodative policies.
The impact on the cryptocurrency market is worth noting: In the short term, improved liquidity may provide some support for coin prices, but the uncertainty of economic downturns will continue to suppress the performance of risk assets. $BTC and major digital assets are likely to enter a phase of intensified fluctuations, while small-cap coins lacking solid fundamental support face greater selling pressure and correction risks.
Investment advice:
Be cautious at high levels and avoid blindly entering the market after positive news is released, as this is often a signal of a short-term top.
Maintain sufficient liquid funds, patiently wait for low buying opportunities created by market panic sell-offs, and gradually allocate quality assets.
Closely monitor the subsequent statements of Federal Reserve officials and changes in key economic indicators. Once there is a shift in policy tone, adjustments to the investment portfolio should be made in a timely manner.
The market environment is constantly evolving, but the fundamental rules remain unchanged - accurately grasping the changes in interest rate cycles and identifying market turning points requires analyzing market fluctuations from a macro perspective and mastering the core investment logic to respond to different market conditions.