Last night, the crypto world experienced a major fluctuation, and today the macro market has brought heavy news— the Bank of England took the lead in initiating a global rate cut cycle, and Citibank issued a synchronized statement predicting at least three rate cuts by the Federal Reserve next year. This global easing pace directly puts the logic of "hot money chasing" on the table.

Many people might think that a single rate cut is no big deal, but in fact, it reflects a shift in the stance of the entire global central banking system. When central banks cut rates, market liquidity increases and borrowing costs decrease, causing idle funds originally held in banks or government bonds to start seeking higher-yield investment targets. Traditional assets' returns are no longer satisfying, and history repeatedly proves that whenever the world enters a loose liquidity cycle, the crypto market tends to become a key destination for capital—because the volatility and profit potential in this market are unmatched by traditional finance.

The rapid rise of Bitcoin to 5000 points yesterday clearly illustrates this point. Such a level of increase could not come from retail investors; it must be driven by institutional-level funds. According to market feedback, some leading institutions have already changed their previous reduction strategies and are quietly positioning in crypto assets. Large capital movements like these are always about early deployment, not chasing the trend.

The key now is to closely monitor the true flow of liquidity. When global central banks simultaneously signal easing, the logic of capital allocation will change. As a relatively young but explosive asset class, the crypto market has obviously become a battleground at this moment. For participants, the focus should be on understanding the deep driving forces behind this cycle, rather than being led astray by short-term fluctuations.