Opinion: The Fed's rate cut has injected new uncertainty into risk assets, but it is unlikely to trigger a Christmas rally in Bitcoin.

According to Mars Finance, on December 11th, several analysts commented on the Federal Reserve's FOMC meeting, stating that the Fed's policy adjustment was less of a policy shift and more of a well-thought-out signal. They believe this shift is similar to the cautious stance adopted after the previous rate-cutting cycle. They also noted that the Fed raised its economic growth forecast and lowered its inflation forecast, but also hinted at a higher threshold for further easing. Nick Parklin, co-founder of Coin Bureau, stated that the rate cut was "not as hawkish as some had expected," but the numerous dissenting voices and the Fed's decision to only cut rates once next year "injected new uncertainty into risk assets." He said, "This is not enough to trigger a Christmas rally in Bitcoin." Timothy Misir, head of research at BRN, believes the pullback after the price cut reflects that the market "welcomes the price cut but does not accept guidance." Misir stated that institutional investor demand remains strong, noting that since December 1st, smart money wallets holding 10 to 10,000 Bitcoins have accumulated approximately 42,565 Bitcoins. However, retail investors' selling continues to dampen the upward momentum. The question remains: can ETF demand sustain supply until the macroeconomic outlook becomes clearer? (The Blcok)