Did the rate cut turn into a short-selling signal? Last night, the Federal Reserve cut interest rates by 25 basis points as expected. We thought the market would rebound once the dust settled. However, Powell's remarks were more dovish than anticipated, and the combination of rate cuts and balance sheet expansion to release liquidity should have been bullish.

But I still chose to short ETH for three reasons. First, the 25 basis point rate cut was already priced in by the market, and such expected positive news often presents the best exit point. Second, more importantly, the outlook for rate cuts in 2026 has shifted from two adjustments to just one, and the market has yet to fully digest this change. The third point is what concerns me most—there was a rare disagreement within the Federal Reserve, which is uncommon in past decisions. Plus, with the new chair nomination next month, policy uncertainty has sharply increased.

Staying up late to monitor the market was worth it; my short positions yielded good profits, and I woke up with the gains secured. The focus now shifts to January’s market; the liquidity from the Fed's balance sheet expansion will eventually enter the market. Prepare your ammunition, as this could be a better window for strategic positioning.