Opinion: The Federal Reserve's rate cut this time injects new uncertainty into risk assets, but it is not enough to trigger a Christmas rally for Bitcoin.

On December 11, regarding the Federal Reserve’s FOMC meeting, several analysts stated that the policy adjustment by the Federal Reserve is more of a well-considered signal rather than a policy shift. They believe that this change is similar to the cautious stance taken after the last rate cut cycle. They also noted that the Fed raised its economic growth forecast, lowered inflation expectations, but at the same time indicated that the threshold for further easing is higher. Coin Bureau co-founder Nick Purklin said that this rate cut “is not as hawkish as some expected,” but there are many voices of opposition, and the Fed’s decision to only cut once next year “injects new uncertainty into risk assets.” He said, “This is not enough to trigger a Bitcoin Christmas rally.” BRN research director Timothy Misir believes that the pullback after the price drop reflects that the market “welcomes the cut but does not accept the guidance.” Misir stated that institutional investors’ demand remains strong and pointed out that since December 1, smart money wallets holding between 10 and 10,000 Bitcoins have accumulated approximately 42,565 Bitcoins. However, retail investors’ continued sell-off still suppresses the rally. The issue is whether ETF demand can continue to absorb supply before macroeconomic trends become clearer. (The Block)