Today someone asked me why the cryptocurrency fell after the Federal Reserve cut interest rates?

Why is that? Actually, it's quite simple, it's still about expectations. The Federal Reserve cutting interest rates was anticipated by the vast majority, which is called meeting expectations. Meeting expectations usually doesn't lead to significant volatility. The market needs surprises, for example, if the Federal Reserve said they would hold Bitcoin, you would see it rise to 150,000 the next day. But conversely, if the Federal Reserve suddenly stated plainly, "We will not hold Bitcoin," that is below expectations, and so the market falls to show you.

But what I want to say is that this kind of question and its answer are not really of much use to us ordinary traders.

Generally, trading can be divided into short-term and long-term. Let's first talk about long-term. For long-term players, does this kind of news have any impact? As a long-term player, I can tell you, it has no impact at all. Because the extent of this influence is truly negligible. After all, it hasn’t led to a significant flow of funds, nor has it brought about drastic changes in future policies. Why bother with it?

As for short-term trading, it actually doesn’t help much either, because in such situations, you can't react in time. By the time you do react, the price has already dropped. Furthermore, you’re likely to sell or short at the lowest point, which is worse than being completely unaware. This is the real black swan, an event that is completely unpredictable.

So, don’t ask me these kinds of questions anymore, they’re of no use.