Is the Federal Reserve about to cut interest rates? This signal might be more important than you think

Recently, news from the US economic sector has ignited market enthusiasm. The White House economic advisor explicitly stated that inflation is not as severe as imagined—calculated on a three-month moving average, the data is only 1.6%, which is actually below the Fed's 2% target.

Sounds a bit complicated? Actually, it means just one thing: inflation isn't that fierce, and the Fed can now feel confident about cutting rates.

What does this signal mean for the crypto market? Looking deeper, moderate inflation implies the Fed has room to maneuver and can be more aggressive in releasing liquidity. Think about it—when money spills out of traditional finance systems seeking new safe havens, digital assets like Bitcoin and Ethereum often become the "new play" in investors' eyes. Historical experience shows that each easing cycle is accompanied by an increase in crypto asset valuations—this is not a coincidence; it's a natural choice driven by liquidity.

So, what should you do now? Stay calm, don’t go all-in at the first sign of excitement.

First, pay close attention to this signal. Once rate cut expectations are confirmed, market sentiment will gradually heat up, and this fermentation process could take several months.

Second, if you hold coins, hold through the volatility. Short-term fluctuations are normal, but if the overall trend looks positive, don’t be scared out of the market.

Third, if a pullback opportunity really appears, consider deploying gradually rather than betting on a single big move. Risk management is about finding a balance between "being present" and "being prudent."

In one sentence: watch the trend, but also stand firm. The story of this market cycle might just be starting to turn the first page.