Why Crypto Didn’t Turn Bullish After the Fed Rate Cut.

The crypto market has been experiencing a notable downturn, defying expectations that potential Federal Reserve interest rate cuts would trigger a bullish rally. Instead, we're seeing continued bearish pressure, with many assets trending downwards.

One significant factor being cited for this unexpected behavior is the anticipated move by the Bank of Japan (BoJ). There's growing speculation that the BoJ will raise its interest rates next week, a decision that could have widespread implications across global financial markets, including cryptocurrencies.

Historically, easy monetary policies (like lower interest rates) tend to make riskier assets, such as crypto, more attractive. However, with the global economic landscape shifting and central banks like the BoJ tightening their policies, investors might be re-evaluating their risk exposure. This potential shift away from ultra-loose monetary policy by one of the world's major central banks appears to be contributing to the current market jitters and a lack of upward momentum in the crypto space.

It’s a complex interplay of macroeconomic factors, and market participants are keenly watching these central bank decisions for clearer direction.