More than one buddy asked Haishao, "Isn't the interest rate cut Favourable Information? Why did it fall?"

Actually, it's not the interest rate cut that causes the market to fall, it's the initial reaction to the interest rate cut.
From the perspective of the Secondary Market, there is a popular saying in the crypto world that all Favourable Information is Unfavourable Information. This is because before the Favourable Information, the market makers will Whipsaw.
From a macro perspective, the beginning of a rate cut is actually the end of a rate hike. When an economy has experienced a period of rate hikes and high interest rates, it is actually the most tense time for Liquidity. Just like a person who has been overweight for a period of time, when they are about to lose weight, losing weight is certainly healthy, but the moment they start losing weight is when they are at their heaviest, least healthy, and most dangerous. In history, the beginning of a rate cut has often been associated with crises.
From the perspective of the real economy, interest rate cuts are to stimulate the economy. So at the beginning of the interest rate cut, it may be the worst time for the real economy. After the Big Pie ETF, it has a higher correlation with the US stock market than before. The US stock market is related to the real economy, and the early stage of interest rate cuts often leads to a downward trend in the US stock market.
In addition, Hai Shao has another logic. Because the interest rate is going to be lowered, whether it is the physical or the speculative market, it is better to repay the high-leverage loans first, and then borrow again after the rate cut, which can reduce the interest cost.
Most importantly, because of the historical crises that occurred at the beginning of rate cuts following prolonged high interest rates, as well as the historical decline of the US stock market at the beginning of rate cuts, the market has formed some Consensus. Therefore, it is expected that there may be some selling before the rate cut, so there may really be a decline at the beginning of the rate cut, and it may even start to decline in advance before the rate cut.#BTC #ETH