📉 Three major macro events... and almost no reaction from the market. Why?
Wednesday was a huge day for macro – three major events happened at the same time. And yet… markets barely moved.
So what exactly happened, and why did crypto react so weakly?
Let’s break it down.
1️⃣ Interest rate cut
The Federal Reserve announced a 0.25% interest rate cut – exactly as almost everyone expected.
This means cheaper loans for households and businesses, more money circulating and a boost for the economy (and, in theory, for asset prices).
💡 In theory this is good news for crypto, since lower rates typically encourage investments in risk assets.
2️⃣ The end of “tightening” – QT is over
The Fed officially announced the end of Quantitative Tightening (QT) – the process where the central bank reduces its balance sheet by selling government debt and mortgage-backed securities.
In simple terms: they will no longer pull liquidity out of the market.
When this stops, the economy breathes easier and assets have more room to grow.
💬 Another signal that monetary policy is turning more accommodative, which historically supports crypto market growth.
3️⃣ The Trump – Xi Jinping meeting
Yes, that happened too.
The leaders of the US and China met and the result was a clear thaw in relations:
- Lowered tariffs between the two economies
- Renewed access to rare metals
- Fewer trade barriers
🇨🇳 When the world’s biggest players “sync their clocks,” investors tend to feel calmer.
So why didn’t the market react?
The answer is simple:
💬 Everything was already priced in.
The market expected these decisions, so it “played them out” before the official announcements.
When there are no surprises (positive or negative), the movement stays minimal.
📉 Bitcoin still dropped about 3.5% after Jerome Powell’s press conference, where he stated that “a December rate cut is not guaranteed.”
What happens next?
The plan remains the same:
stay calm, focus on the major assets and think long term.
The market loves surprises – but when there aren’t any, that is also a signal: there is still time to position yourself before the next big move.
