Just finished watching the Federal Reserve press conference—this time, quite a move—cutting interest rates by 25 basis points, along with a $40 billion treasury bond purchase plan. Basically, they’re opening the floodgates.

The voting result was 9:3 in favor of interest rate cuts, and this divergence is worth pondering. More importantly, the policy statement removed the phrase "low unemployment rate," indicating that the Fed is starting to worry about economic cooling. The dot plot shows further cuts into 2026, which isn’t a temporary move but a cyclical shift.

Market logic is straightforward: lowering interest rates means borrowing costs decrease, and funds seek outlets. After traditional safe-haven assets’ yields are compressed, highly volatile, high-yield crypto assets naturally become an allocation option. Mainstream cryptocurrencies like Bitcoin and Ethereum have historically performed well under a loose liquidity environment.

Looking back at the 2020 easing cycle, BTC surged from just over $3,000 to $69,000. Of course, history doesn’t repeat exactly, but similar macro environments can indeed trigger comparable capital flows. The current question isn’t whether prices will rise, but how much space this liquidity movement can push the market.

As inflation expectations rise, the narrative of anti-inflation will be reactivated. The crypto market has always been highly sensitive to monetary policy, and the signals from the Fed’s pivot are already quite clear. In the coming quarters, it might be a window to observe capital rotation.