$BTC $ETH The Federal Reserve's policy stance is shifting, and the crypto market may be approaching a turning point

Recently, signals have emerged internally within the Federal Reserve: rate cuts are on the agenda. A certain Fed official publicly stated that not only are multiple rate cut calls being made, but they also support an aggressive cut of 50 basis points in a single move. This behavior is unusual, especially considering that their term is about to end. These statements suggest a consensus within the Fed regarding a policy shift.

Is the high interest rate cycle really coming to an end? From a market perspective, the signs of this change are already quite clear.

What does this mean for crypto assets? Liquidity release. Lowering interest rates reduces the cost of capital, often leading institutional and retail investors to increase risk appetite. Historical experience shows that a loose monetary cycle typically boosts valuations of high-risk assets—Bitcoin and Ethereum, as highly liquid and risk-sensitive assets, often become the first choices for funds.

But reality is often more complex. Policy shifts are not achieved overnight, and there will be multiple battles between expectations and actual implementation. Some market participants are already positioning early, while others are caught at high levels.

A few tips for retail investors:

1. Keep a close eye on policy developments. Every Fed meeting and statement can trigger liquidity changes, so staying informed is fundamental.

2. If you already hold positions, stick to your fundamental analysis and don’t be scared out by short-term volatility. True opportunities often hide within fluctuations.

3. Still on the sidelines? Gradual deployment is a more prudent approach. Dollar-cost averaging can effectively smooth risk and avoid buying at high points.

4. Always remember risk management. Chasing gains and panic selling are often the biggest enemies for retail investors. Stay rational and wait for the policy to truly take effect—that’s when the market will give clearer signals.

The wind is changing, but opportunities always belong to those who are prepared. Keep monitoring policy trends, adjust your strategies, and prepare for the next cycle.