【Federal Reserve Cuts Rates, Dollar Plunges, Cryptocurrency Market Welcomes a New Wave】

Last night, the Federal Reserve announced a 25 basis point rate cut. Interestingly, the dollar actually declined. This is no coincidence—the market had already digested this outcome. The real focus is: capital is accelerating its escape from the traditional financial system, seeking new sources of returns.

What does this change mean for the crypto market? To put it simply:

First, mainstream crypto assets like Bitcoin and Ethereum will receive more ample liquidity support. When the Fed releases liquidity, funds need to find a place to go, and the crypto market happens to be the "new frontier" in the eyes of traditional investors.

Second, yields in traditional markets are declining, making bank wealth management and bonds much less attractive. Institutional and individual funds may accelerate into high-growth sectors, including privacy coins and other niche areas.

Furthermore, the pressure for the dollar to depreciate is increasing. People holding dollar cash need to consider how to preserve value. Under this expectation, the hedging and appreciation attributes of crypto assets will be reevaluated.

But there are a few pitfalls to avoid:

Not all coins will rise together. Projects without real liquidity support and relying solely on stories are most likely to be exposed. Focus on those with solid fundamentals and sustained narratives.

Don’t rush all in during this wave; stagger your investments and control risks—this is the key to longevity.

The rate cut cycle most tests your selection ability—finding genuine opportunities amid volatility while maintaining a grasp on mainstream trends.

History has shown that every reallocation of global liquidity rewrites the ecosystem landscape of the crypto market. This wave is coming—are your strategies ready?