According to the latest disclosure from the Federal Reserve's decision-making body, more than half of the committee members support a 25 basis point interest rate cut in January. After this signal was released, market expectations quickly heated up, and billions of dollars in liquidity are poised to act, suggesting that a new rise in the market seems to be imminent.
In the long term, this is not just a technical adjustment of the Interest Rate; it reflects the entire financial system's transition from a tightening mode to a loosening mode. When traditional finance "opens the floodgates," a large amount of idle capital instinctively seeks more efficient growth avenues, and the cryptocurrency ecosystem happens to become a favored target for such funds. Historical experience has repeatedly proven that whenever a rate cut cycle officially starts, the expansion of Liquidity often first drives up the prices of mainstream assets such as Bitcoin and Ethereum.
At such nodes, investment strategies should focus on trend opportunities rather than being misled by short-term fluctuations. Specifically, Bitcoin and Ethereum remain the most direct beneficiaries of liquidity and will benefit first. Next are public chains like Solana and the leading protocols within their ecosystems, which will absorb the overflow of funds. Tracks like AI, RWA, and DeFi, which have a clear narrative foundation, may also become the focus in this wave.
That said, it's important to stay clear-headed. The market often experiences significant fluctuations before and after expectations are fully realized, and the "buy low, sell high" scenario could unfold at any moment. Blindly following the trend or going all in is no different from seeking trouble driven by FOMO emotions. A wiser approach is to build positions gradually, allowing risk management to run through the entire allocation process. The signals of a macro shift have become clear enough, but opportunities always belong to those participants who possess both courage and patience.
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According to the latest disclosure from the Federal Reserve's decision-making body, more than half of the committee members support a 25 basis point interest rate cut in January. After this signal was released, market expectations quickly heated up, and billions of dollars in liquidity are poised to act, suggesting that a new rise in the market seems to be imminent.
In the long term, this is not just a technical adjustment of the Interest Rate; it reflects the entire financial system's transition from a tightening mode to a loosening mode. When traditional finance "opens the floodgates," a large amount of idle capital instinctively seeks more efficient growth avenues, and the cryptocurrency ecosystem happens to become a favored target for such funds. Historical experience has repeatedly proven that whenever a rate cut cycle officially starts, the expansion of Liquidity often first drives up the prices of mainstream assets such as Bitcoin and Ethereum.
At such nodes, investment strategies should focus on trend opportunities rather than being misled by short-term fluctuations. Specifically, Bitcoin and Ethereum remain the most direct beneficiaries of liquidity and will benefit first. Next are public chains like Solana and the leading protocols within their ecosystems, which will absorb the overflow of funds. Tracks like AI, RWA, and DeFi, which have a clear narrative foundation, may also become the focus in this wave.
That said, it's important to stay clear-headed. The market often experiences significant fluctuations before and after expectations are fully realized, and the "buy low, sell high" scenario could unfold at any moment. Blindly following the trend or going all in is no different from seeking trouble driven by FOMO emotions. A wiser approach is to build positions gradually, allowing risk management to run through the entire allocation process. The signals of a macro shift have become clear enough, but opportunities always belong to those participants who possess both courage and patience.