Bitcoin Tanks Despite the Fed’s “Soft Pivot”: Why the Market Isn’t Buying the Rate Cuts
Bitcoin dropped despite the Fed's expected rate cut and end of QT because traders fear underlying economic weakness and lack confidence.Summary
Bitcoin fell significantly, dropping from $116,000 to $107,200, even after the Federal Reserve implemented a widely expected 0.25% rate cut and announced the end of Quantitative Tightening (QT) on December 1st. The market is reacting negatively because traders believe the Fed's move signals underlying economic distress, such as softening job data and rising layoffs, rather than a true dovish pivot. While the Fed's dot plot suggests more cuts in 2025, the market views the current easing as "damage control." Analysts suggest the immediate drop might be a knee-jerk reaction, presenting accumulation opportunities later, but ultimately, confidence, not just liquidity, drives bull markets, and current sentiment remains low.
(Source：Brave New Coin)