Plunge! Why?

Last night, the Federal Reserve cut interest rates by 25 basis points, in line with market expectations, but why did the market experience a plunge? The main reasons are as follows:

1. Powell significantly lowered the forecast for interest rate cuts next year, changing the original expectation from four times to possibly two, altering the market's future liquidity expectations.

2. Powell denied that Bitcoin would be included in the United States' reserve currency in the future, disappointing the original market expectation that Bitcoin would become a reserve currency for various countries.

3. Historically, the market tends to decline during the Western Christmas holiday period, so most people will hold their assets with caution, leading to reduced inflow of funds and a market downturn!

4. The big players are harvesting profits from bullish contracts because they are well aware of the underlying data regarding whether to harvest from rising or falling markets, allowing for profit-taking in both scenarios based on market conditions.

In summary: The market is unpredictable; avoid high leverage contracts during periods of volatility. It is better to stay in cash than to bet on rising or falling. Wait for the market to determine its direction before entering. The market has risks; invest with caution!