Trump and the pressing rate cut

[EarnOnVictor]

Finally, we are almost there: next week, there will be a FED decision.
The tradfi market has quite unanimous expectations: 87% of the market foresee a cut.
Crypto market is moving in the opposite direction thou.

The cut was here again, as the FED cut the Federal Funds Rate on Wednesday by 25 basis points, as widely expected by all my channels. This cut is not so much to move anything in the crypto market, especially when it was so widely expected. The cut of 50bp or 75bp magnitude, against the widely expected 25bp would have ignited enough.

Last dump before the spring gets decompressed?

No amount of cuts would have changed the narrative in the crypto world in the long run. What drives the crypto space is beyond that.

[fillippone]

Agree on the above. Markets react to the new information, not the old one.
If the Fed had surprised with 50 or 75 bp cuts, the market would have reacted; otherwise, it's a buy the rumor, sell the news.
What was striking, anyway, is the underperformance of Bitcoin when compared to the Equity Markets.

[coyhasmon]

What was striking, anyway, is the underperformance of Bitcoin when compared to the Equity Markets.

Why? The market performed positively in the time leading up to the FED meeting. Basically it priced in the event as the confidence of a cut grew. What is the problem?

[fillippone]

What was striking, anyway, is the underperformance of Bitcoin when compared to the Equity Markets.

Why? The market performed positively in the time leading up to the FED meeting. Basically it priced in the event as the confidence of a cut grew. What is the problem?

There was no problem, but, of course, many people expected much more aggressive moves after the FED. In my opinion, these hopes, given the market already pricing a 25 cut with 98% probability, were misplaced. The puzzling point was however the stock market rallied more after the fed. Equity read something in the FED cryptoverse didn't.