The Federal Reserve cut interest rates again early this morning, this time by 1 notch (25 basis points), bringing the federal funds rate to 3.50%-3.75%.

As soon as the news broke, Bitcoin surged directly, reaching a high of $94,000. But the excitement didn't last long—selling pressure quickly emerged, leaving a long upper shadow on the candlestick chart, and BTC quickly reversed direction, dropping below $91,000 at one point. When writing this, the price hovered around $91,062.

Other major cryptocurrencies followed a similar script: they surged when the rate cut announcement was first made, only to be hammered back down shortly after.

What did Powell say at the press conference? Same old tune—inflation has indeed come down quite a bit, but it's still a ways off from the 2% target, and recent progress has been a bit sluggish. The labor market is cooling more slowly than expected, but overall it remains stable.

The most critical line is this: the Fed now has “sufficient patience to wait for more data.” In plain language, that means don’t expect frequent rate cuts in 2025. The market understood this hint, which is why crypto prices spiked then pulled back—after all, liquidity expectations aren't that optimistic.

In the short term, the crypto market may fluctuate within this range back and forth. Those looking to buy the dip should be aware that this is not a one-sided trend.