The Federal Reserve's decision to cut interest rates by 25 basis points (from 5.25%-5.5% down to 5.0%-5.25%) marks the third consecutive rate cut since September 2024. However, the market's main concern is what comes next. Here's a straightforward interpretation:

1. The rate cut itself is not surprising. The market fully expected a 25bp cut, so this confirms a dovish stance. It’s neither hawkish nor hawkish, just neutral.

2. The key points are the dot plot and Powell's speech:
- The median projection in the 2025 dot plot has been revised down from four more cuts (1%) to just two cuts (0.5%).
- In 2026, there will be one less cut.
This essentially tells everyone: rate hikes are slowing down, and don’t expect a wild drop to 3% in 2025.

3. Powell summarized with one sentence:
"We are recalibrating our restrictive stance, but at a slower pace than before because inflation has not yet fully returned to 2%, and the labor market remains strong."
In plain language: The economy isn’t that bad, inflation is sticky, and I’m not in a hurry to cut rates aggressively. Let’s take it slow to avoid reigniting inflation.

4. Market impact:
- Short-term: U.S. stocks, bonds, gold, and Bitcoin all fell because everyone had bet on 5-6 rate cuts in 2025, and now expectations are halved.
- Mid to long-term: It’s not so scary. The probability of a soft landing for the U.S. economy remains high. The bull market has shifted from rapid growth to steady climbing.

One sentence summary:
The rate-cut cycle isn’t over, but it’s shifting from full throttle to gentle acceleration plus some braking. Risk assets like Bitcoin will continue to fluctuate in the short term. If stability is lost, expect a pullback to 85,000-88,000; if it stabilizes, gradually aim for 100,000.