💥Interest rates have been cut, why is the crypto market still crashing?

In the past few days, many friends in the crypto community have been asking the same question:
"Isn't it said that interest rate cuts are good for risk assets? Why did the crypto market collapse instead?"
Last night, when the Federal Reserve announced a rate cut, many people rushed into the market, opening 10x and 100x leverage positions, only to wake up to find their accounts liquidated—back to square one overnight.
In fact, this scene plays out in every cycle. Lowering interest rates is indeed a "positive factor", but the logic is far from simple.

🚨1. Good news materializes = Bad news is realized
The cryptocurrency market is always "rising in expectation and falling in reality."
Even before the Federal Reserve officially announced it, the market was already betting that "interest rates will be cut"; institutions, whales, and retail investors all entered the market early.
After the news was released, the main funds chose to sell off and cash out instead.
So the news is positive, but the market turns negative.
In summary: "A favorable outcome is not the beginning, but the end."
Historically, almost every time there is a rate cut in the first month, the crypto market experiences a similar "false good news trend."

💧2. Interest rate cuts ≠ monetary easing, money hasn't flowed into the crypto space.
Many people see interest rate cuts as "turning on the tap," but they are just a signal.
In reality:

Banks are unwilling to lend, and funds remain tight;

The U.S. Treasury issues bonds to absorb liquidity;

Institutions are more willing to buy U.S. Treasury bonds and gold rather than high-risk assets.

In other words, the money has indeed increased, but it hasn't entered the crypto space.
Interest rate cuts save the economy, but may not necessarily save the market.

📉 3. Risk appetite during the retreat
A rate cut cycle typically indicates an economic downturn:
Corporate profits are declining, employment is weakening, and investment confidence is decreasing.
When market risk appetite wanes, the first assets to be sold off are always the most volatile ones—Bitcoin and Ethereum.
So you will see:
Gold rises, US bonds rise, dollars flow back, but the crypto market plunges.
Funds are at risk of withdrawal, not in pursuit of returns.

🧭 Four, the expectations have changed, which is more fatal than the result.
The key to this plunge is not "the interest rate cut itself," but rather that market expectations were not met.
For example:
"This time it was a reduction of 25 basis points, but it hinted that there will be no further cuts this year."
The market immediately understood it as: the easing cycle is not as aggressive as expected, so it directly crashed.
The market in the cryptocurrency world is always driven by "expectations" rather than "facts."

🪙5. Combining with the actual situation from last night
Last night, the Federal Reserve lowered interest rates by 25 basis points as the market expected, while also announcing the abandonment of quantitative tightening (QT) and plans to end balance sheet reduction in a month.
This seems to be a double benefit, but Powell expressed caution after the meeting:

Inflation still has upward pressure;

Employment is facing downward risks;

The committee has differing opinions on whether to cut interest rates again in December;

"Interest rate cuts are not a foregone conclusion."

This means: the market's "unlimited easing expectations" have been broken.
Moreover, the current liquidity is still primarily flowing into U.S. stocks, which are hitting new highs, and gold continues to be strong, while the crypto market has not yet received any of this flow.

📊 6. Market Outlook: Mainly Volatile, Opportunities Still Exist
In the short term, the crypto market will continue to fluctuate in the range of 3700-4300.
But don't rush to be pessimistic —
The US stock market and gold first enjoy the liquidity cake, while the cryptocurrency market usually catches up in the later stage.
The market is not dead, it's just a matter of the rhythm of rotation.

🧠Summary
Interest rate cuts are signals, not starting points.
Real market conditions come from the inflow of liquidity and the recovery of risk appetite.
Short-term volatility, but there are still opportunities in the long run.
Remember this phrase: The crypto market always dies at the moment of "profit realization" and lives on the next stretch after the "panic."

Disclaimer:
This article is for market analysis and personal opinion sharing only and does not constitute any investment advice. The cryptocurrency market is highly volatile, please make rational judgments and operate cautiously.