Last night's market decline after the interest rate cut, a scene of anti-human nature reappears

Last night, the Federal Reserve cut interest rates by 25 basis points, which was originally a long-awaited positive for the market. However, the subsequent continuous suppression reversed market sentiment, and today's decline was unexpected for everyone. Yesterday, everyone predicted that the market would rise, but the market always goes against human nature, and no one guessed right, resulting in a sigh of regret.

Why does a rate cut instead trigger a decline?

1. The market has already digested the good news

• The news of the rate cut had already been anticipated by the market, and after it was actually implemented, there were no new driving factors to support an increase.

2. Main force suppresses sentiment

• After the rate cut, short-term sentiment is optimistic, but the main force goes against it, taking the opportunity to suppress prices, causing a chain of sell-offs.

3. Year-end effect

• The U.S. is approaching the holiday season, market trading is light, and large funds prefer to lock in profits, further exacerbating the decline.

Outlook for future market

• It may be difficult to have large fluctuations by year-end

The Americans are about to celebrate the New Year, and during this period, liquidity is already insufficient, coupled with a lack of strong positive news, the market is unlikely to have the momentum for a significant rise.

• Unilateral trends decrease, with oscillation as the main theme

Recently, market volatility has intensified, and unilateral trends have almost disappeared; oscillation will become the main tone.

Operational suggestions

1. Take profits when contracts look good

• The current market direction is unclear, making contract operations more difficult; one should avoid greed, and take profits and exit in a timely manner.

2. Maintain light positions and observe

• Do not heavily bet on directions for now; patiently wait for clearer trend signals.

3. Pay attention to changes in market sentiment

• Market sentiment goes against human nature; the more everyone is bullish, the more cautious one should be, and vice versa.

Summary: The favorable impact of the rate cut turns into a negative, and the market again demonstrates its anti-human nature. In the year-end oscillating market, staying calm and taking profits is currently the best strategy.$BTC