A recent market signal shift has emerged. White House economic advisors, in a recent interview, openly stated that U.S. inflation is actually below the Federal Reserve's target, currently around 1.6%, and the Fed has "ample room" to push for rate cuts.
This statement may sound ordinary, but coming from an official high-level source makes it different. Usually, such remarks indicate a loosening of policy direction — next year's rate cut cycle could be more aggressive and faster than the market currently prices in.
Why should the crypto community pay attention to this? Because once dollar liquidity expands, funds will seek high-yield assets. History has given us a reference: by the end of 2023, market expectations for rate cuts began, and Bitcoin surged from $25,000 to $44,000. An environment with abundant liquidity is naturally favorable for digital assets — whether Bitcoin, Ethereum, or other mainstream coins.
Of course, this doesn't mean you should go all-in. A more practical approach is:
**Hold steady in spot positions**: Core holdings like Bitcoin and Ethereum; unnecessary chasing and panic buying can lead to being shaken out during adjustments.
**Add to positions gradually during pullbacks**: If there's a short-term correction, it's actually a better opportunity to build positions. Don't wait until the positive signals are fully confirmed before acting.
**Stay away from high leverage**: Policy volatility and uncertainty always exist, and aggressive leverage often becomes the trigger for liquidation at critical moments.
Liquidity-driven markets are real, but maintaining a calm mindset is always more important than chasing highs.
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TestnetScholar
· 1h ago
The White House says so, interest rate cuts are definitely not happening, liquidity is coming
Just like at the end of 2023, it's our turn again, right?
View OriginalReply0
WhaleMistaker
· 10h ago
The expectation of interest rate cuts is back again; this trick was played once last year.
View OriginalReply0
MultiSigFailMaster
· 10h ago
Wait, is a 1.6% inflation rate enough to cut interest rates? Does this logic hold up? It feels like we're on the eve of another liquidity injection.
A recent market signal shift has emerged. White House economic advisors, in a recent interview, openly stated that U.S. inflation is actually below the Federal Reserve's target, currently around 1.6%, and the Fed has "ample room" to push for rate cuts.
This statement may sound ordinary, but coming from an official high-level source makes it different. Usually, such remarks indicate a loosening of policy direction — next year's rate cut cycle could be more aggressive and faster than the market currently prices in.
Why should the crypto community pay attention to this? Because once dollar liquidity expands, funds will seek high-yield assets. History has given us a reference: by the end of 2023, market expectations for rate cuts began, and Bitcoin surged from $25,000 to $44,000. An environment with abundant liquidity is naturally favorable for digital assets — whether Bitcoin, Ethereum, or other mainstream coins.
Of course, this doesn't mean you should go all-in. A more practical approach is:
**Hold steady in spot positions**: Core holdings like Bitcoin and Ethereum; unnecessary chasing and panic buying can lead to being shaken out during adjustments.
**Add to positions gradually during pullbacks**: If there's a short-term correction, it's actually a better opportunity to build positions. Don't wait until the positive signals are fully confirmed before acting.
**Stay away from high leverage**: Policy volatility and uncertainty always exist, and aggressive leverage often becomes the trigger for liquidation at critical moments.
Liquidity-driven markets are real, but maintaining a calm mindset is always more important than chasing highs.