Recently, the U.S. Federal Reserve announced a 25 basis point reduction in the target range for the federal funds rate, lowering it to a level of 4%-4.25%, and hinted that this could be the start of a series of rate cuts. Theoretically, this decision should bring Favourable Information to the Capital Market, especially in the realm of Crypto Assets. However, the actual market reaction was unexpected: prices quickly fell back after a brief pump.

The root of this abnormal phenomenon lies in market expectations. In fact, this interest rate cut has been widely discussed for more than a month, and the market has already digested this information in advance. Many investors have already positioned themselves and quickly took profits when the news was officially announced.

This event highlights the importance of expectations in the financial markets. Investors often act in advance based on expectations, leading to the phenomenon of "buying the expectation, selling the fact" when the actual event occurs. This effect may be more pronounced for high-volatility assets such as Crypto Assets.

In addition, although the Federal Reserve's decisions are important, they are not the only factors influencing the market. Various factors such as the global economic situation, geopolitical risks, and the regulatory environment can all affect investors' decisions. Therefore, solely focusing on a single event may lead to biases in investment judgments.

For investors, this experience reminds us to comprehensively analyze market information and not to rely too heavily on a single event or indicator. At the same time, we must also be wary of excessive reactions to market sentiment, maintaining a rational and long-term investment perspective. In a rapidly changing financial environment, it is equally important to flexibly adjust strategies and remain vigilant.