#CryptoMarketRebound Despite the FED's Interest Rate Cut, Why Didn't Bitcoin Rise? Analyst Explained and Shared His Preferred Altcoin Instead of Ethereum!

Analyst Markus Thielen evaluated during his participation in a program why Bitcoin did not rise despite the FED's interest rate cut.
Unusual activity is happening in the cryptocurrency markets. Despite the FED's rate cut, the largest cryptocurrency Bitcoin (BTC) lost value, surprising investors.

Normally, interest rate cuts are expected to be supportive signals for risky assets, but this development poses a threat to the current crypto rally's future.
In an in-depth interview with The Wolf Of All Streets channel, analyst Markus Thielen discussed the mixed signals and technical factors behind the market decline.

FED Chairman Jerome Powell's recent remarks created serious uncertainty in the market. Powell's comments containing both hawkish and dovish tones and the uncertainty about future rate cuts confused investors.
Initially, Powell's comments suggesting that labor data might be exaggerated increased expectations for further rate cuts, causing a short-term jump in Bitcoin to $94,000.

However, Thielen states that this rally was quickly extinguished when the FED's official statement was perceived as "hawkish." The fact that the committee expects only one rate cut next year and another the following year signals that the easing will not be as rapid and aggressive as the market anticipated.
Markus Thielen argues that there is a loss of momentum in the market based on technical and on-chain (on-chain) data. Thielen mentioned that Bitcoin has broken out of the bull market channel it has been in since 2023 and is currently trying to hold at the lower end. The inflow of money into Bitcoin ETFs, which is an important indicator of institutional interest, has slowed significantly compared to last year.
On-chain data shows a net outflow from Bitcoin in December. This is the first time since August 2023 and is considered a clear sign of loss of momentum in the market.

According to Thielen, without more capital entering the market, it will be difficult for Bitcoin's price to recover quickly from current levels.

Markus Thielen states that he does not expect a major movement in the market before the year-end holiday period, as institutional investors close their positions, and he foresees a sideways consolidation.

Thielen also defends a theory that links the long-term cycle to the US midterm elections instead of the halving (halving), but emphasizes that the actual direction of the market will be determined by tangible cash flows.

On the altcoin side, Thielen expects significant selling pressure as VC (Venture Capital) investors' locked funds are unlocked, amounting to (about $59 billion annually). He notes that with institutional money primarily focused on Bitcoin and Ethereum, there is a lack of strong catalysts for altcoin recovery. He added that he prefers BNB over Ethereum due to ecosystem advantages and return potential.
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