The crypto circle is most skilled at reverse operations. When most people blindly chase the trend, it often marks the beginning of the harvest.

After the Federal Reserve's interest rate decision meeting, a 25 basis point rate cut was delivered as expected. According to conventional logic, this should be positive news, and the market should cheer. However, Bitcoin suddenly plummeted—dropping from $94,500 straight down to around $92,000, causing over $300 million in short-term liquidations across the market.

Many newcomers were confused: Isn't a rate cut supposed to be good? Why did the crypto market fall instead?

That's a good question. Those who have experienced several cycles understand that the crypto world does not operate according to conventional rules. Blindly following the trend makes one most vulnerable to being exploited. Today, let's thoroughly explain the logic behind this.

**Why do favorable policies turn into negative ones?**

First, the expectations were already priced in.

The essence of trading cryptocurrencies is trading expectations. Once the news of a rate cut spreads widely in the market, large funds have already quietly positioned themselves, and prices have risen in advance. When the policy is actually announced, it becomes a window for smart money to exit. In simple terms, it's the "buy the anticipation, sell the reality" strategy. The recent market behavior is a textbook example of this.

Second, internal dissent within the Federal Reserve is also fermenting.

Although the rate was cut, the Federal Reserve is never a monolithic entity. At the December meeting, two officials voted against the decision, and Cleveland Fed President Loretta Mester openly stated—"I lean toward a more tightening stance." This internal disagreement has caused market concerns about the continuity of future policies. The biggest fear for large funds is policy uncertainty.