Interest rates cut, but is the crypto market celebrating? A more complex story lies beneath. $BTC

This Fed rate cut, while seemingly positive, is actually fraught with underlying tensions. The core issues are twofold:

Severe internal division: 9 votes were in favor of the rate cut, but 3 were fiercely opposed. This contentious debate foreshadows significant uncertainty about the future policy path.

Tightening expectations for the future: The Fed also hinted that the pace of rate cuts next year may slow considerably. This means the "money of easing" in the market may be drying up soon.

Therefore, the effect of this "boost" may be short-lived and limited. Smart money is reassessing its position.

The real pressures in the current market:

Weakening institutional confidence: For example, Standard Chartered recently lowered its Bitcoin price forecast for next year by 50%, citing the fading of key drivers that previously propelled the bull market.

Funds concentrated at the top: The market exhibits a divergent pattern, with Bitcoin leading the gains while altcoins falter, lacking the healthy momentum for a broad-based rally.

Funds are being diverted: Interest rate cuts also boost traditional risk assets like US stocks, meaning new funds don't necessarily flow into the cryptocurrency market.

In the face of complex signals, action is more important than interpreting news:

Closely monitor price verification: Observe whether Bitcoin can substantially break through previous high resistance levels on the back of positive news. If it only surges and then falls back, it proves the positive news is ineffective.

Observe sector correlation: Pay attention to whether the rise is a "Bitcoin solo show" or can drive a general rise in mainstream coins. The latter is a healthier market trend.

Adhere to a defensive strategy: Avoid chasing highs based on news. A more prudent approach is to wait for market sentiment to stabilize, observe the stabilization near key support levels before making any decisions, and always set stop-loss orders.

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