The Federal Reserve has cut interest rates again, but this time even the crypto circle shows little interest.

The 25 basis points landing as expected, yet deviating from expectations. BTC and ETH not only failed to soar on the news but continued to fluctuate after the announcement, showing a typical "buy the rumor, sell the fact" pattern. Trump publicly criticized the rate cut as insufficient, Wall Street frowns, and the crypto market remains silent. This rate cut, which was highly anticipated by the market, has ultimately become the latest footnote of "good news all out, bad news in."
Where exactly is the problem? Looking beyond the surface to the essence, the core issues concentrate on two key contradictions.
First contradiction: The Fed's "verbal balance sheet reduction."
Powell's policy logic is quite divided—pressing the rate cut button on one hand, repeatedly emphasizing "fundamentals are solid" on the other. The underlying message couldn't be clearer: this rate cut is more likely a precautionary adjustment rather than the start of an easing cycle. The market's long-cherished "continuous liquidity" fantasy is shattered, and the risk premium for risk assets must be recalculated.
Even more subtle is that the signals sent by the Fed this time are full of ambiguity. The rate cut magnitude is moderate, but the policy statement retains hawkish undertones. This "dove on the surface, hawk underneath" combo confuses investors about the direction. For the crypto market, liquidity expectations matter more than liquidity itself. When the future faucet's flow is uncertain, who dares to confidently bet big?
Second contradiction: The market has already "over-anticipating."
The previous strong rally of BTC and ETH essentially reflects an "advance consumption" based on rate cut expectations. Since October, a large amount of capital has been pre-positioned based on the narrative of "Fed shifting," digesting the good news early. When the actual rate cut lands and no more surprises can be realized, profit-taking naturally leads to exit and wait-and-see. This is not a denial of the rate cut but a correction of the expectation gap.
Deeper anxiety lies in the shadow of "long-term high interest rates." If policy rates are to "remain at higher levels for longer," then all risk assets, including cryptocurrencies, must face the pressure of rising discount rates in their valuation models. This unresolved macro variable, like an elephant in the room, makes any short-term policy stimulus seem pale and powerless.
Conclusion: Rate cuts are not magic, markets are maturing
The current "cool" market reaction may precisely reflect rationality. It signals that crypto investors are beginning to break free from simple reliance on policy stimulus and are shifting focus to more fundamental macro logic. When liquidity narratives fade, true value discovery will begin.
The next direction for BTC and ETH no longer depends on how the Fed's single move plays out, but whether the global markets can find a new balance amid uncertainty. Will they continue to fluctuate and digest, or regain upward momentum? The answer requires more time and wisdom.
What do you think about the market reaction after this rate cut? Feel free to leave your thoughts in the comments. If you find this analysis helpful, consider following us, and share with friends interested in crypto markets and macro policies for further discussion.