Many people can't understand a phenomenon: why does the stock market plunge when interest rates are clearly cut? There are actually quite a few nuances behind this.

Let's start with the most direct one—**the rate cut isn't enough**. When the central bank symbolically cuts by 25 basis points, but the market had already expected a 50 basis point cut, this discrepancy immediately causes investors to vote with their feet. It's like expecting a salary raise of $2000 but only getting $500—can you be happy?

Next is the **global linkage effect**. Is there really an independent market now? When you cut rates here, European and American stock markets might plummet for other reasons, causing panic withdrawals of capital, and the domestic market suffers as well. Money flows globally, and when risk aversion rises, it doesn't matter whether you cut rates or not.

**Capital allocation** is also a critical variable. After a rate cut, bond yields fall, but bond prices rise! Some stable capital may think the stock market is too risky and switch to bonds for safety. When the money in the stock market decreases, how can it not fall?

Deeper still is the **market interpretation logic**. A rate cut itself may be seen as a signal of economic weakness—why does the central bank cut rates? Is the economy unable to bear the pressure? Once such expectations form, everyone questions corporate earnings prospects, and valuations naturally come under pressure.

Don't forget the **main players' trading strategies**. Good news often turns into bad news—this applies to both crypto and stock markets. Before the rate cut announcement, funds are already positioning; when the cut actually happens, it’s a good opportunity to unload. Retail investors chase highs, while major players dump holdings—classic tactics.

Therefore, investing isn't just about focusing on a single factor. The trends of mainstream cryptocurrencies like ETH, BTC, and BNB are also influenced by macro liquidity, market sentiment, technical factors, and multiple variables. Rational analysis is essential—don't get blinded by surface-level good news.