According to the latest news, senior Federal Reserve officials have recently expressed a clear shift in stance. The board members publicly stated plans to implement over 100 basis points of rate cuts this year. What does this signal imply?

The key points are clear: inflation has gradually approached the target level, and the current interest rate level is too high, exerting significant pressure on economic growth. In other words, the Federal Reserve believes it has tightened policy too much.

What does this mean? From a market perspective, several key changes are imminent.

First, the liquidity landscape will change. The era of long-term high interest rates is ending, and funding costs will significantly decrease. Borrowing costs for businesses and individuals will follow suit, greatly enhancing the attractiveness of risk assets.

Second, this constitutes a structural positive for mainstream cryptocurrencies like BTC, ETH, and XRP. Historical experience shows that a loose cycle often accompanies rotations in risk assets. Stock market rebounds, falling bond yields, and valuation recoveries in cryptocurrencies—these logical chains are common during rate-cutting cycles.

Third, reality still needs to be considered. The pace, magnitude, and specific timing of rate cuts will depend on subsequent economic data. Changes in inflation, employment, and GDP growth this year will influence the Federal Reserve’s actual actions.

But the direction is already set— the rate hike cycle has officially ended, and the easing era is accelerating. For investors seeking returns and growth, this means adjusting their asset allocation strategies accordingly.

What do you think about this rate-cutting cycle? Do you believe it will catalyze the next upward trend? It’s definitely worth paying attention to.