The 'starting gun' for the Federal Reserve's interest rate cut has sounded! Can you catch this wave of wealth in the cryptocurrency market?

On August 13, 2025, Beijing time, U.S. Treasury Secretary Basant pressured the Federal Reserve, publicly calling for a 'one-time 50 basis point rate cut' at the September meeting, emphasizing that the current weak employment data, after revision, has constituted 'emergency rate cut conditions'. This statement directly points to the fierce game between doves and hawks within the Federal Reserve—previously, at the July meeting, two board members opposed maintaining interest rates, and if Basant's favored candidate Milan is approved before September, the dove faction within the Federal Reserve will further strengthen, significantly increasing the probability of a large rate cut.

Why is it said that interest rate cuts are the 'super fuel' for the cryptocurrency market?

In simple terms, the Federal Reserve cutting interest rates = the dollar becomes 'cheap' = money runs out of banks to seek high-yield assets. And the cryptocurrency market is the 'number one destination' for this massive migration of funds!

With more money, Bitcoin becomes 'hard currency'
Think about March 2020, when the Fed cut rates by 50 basis points in one go, Bitcoin skyrocketed from $4,000 to $28,000 in three months, a 6-fold increase! If this time the rate cut is even larger, how will institutional funds choose?

Bank interest rates are so low they can be ignored, saving money = losing money;

Stocks have risen for 5 years; the risk is too high;

Bitcoin and Ethereum, these 'digital gold', have instead become the safest 'get rich options'.
My view: This round of interest rate cuts, Bitcoin breaking $100,000 is not a dream, but don’t rush to go all in—institutional funds are still building positions in batches, and a pullback is an opportunity to enter!

Dollar depreciation, cryptocurrency market 'lying down to earn'
With the Federal Reserve cutting interest rates, the dollar will weaken, and currencies like the yuan and yen may appreciate. What impact will this have on the cryptocurrency market?

Emerging market investors find their local currency has appreciated, but they fear their money 'shrinking', so they will frantically buy Bitcoin to hedge;

The cost for miners is calculated in dollars, dollar depreciation = massive increase in miner profits = they are more willing to hold coins instead of selling, reducing market supply, and prices naturally rise.
My view: Don't just focus on Bitcoin; public chain coins like Solana and Avalanche may rise even more due to the 'capital outflow effect'!

Policy games, be cautious of 'black swan' events
Although the market is currently betting on a 50 basis point rate cut, Fed Chair Powell might 'talk tough'—for example, he might say 'a rate cut does not equal easing', or Trump may pressure the Fed to 'pause rate cuts' to secure re-election, in which case the cryptocurrency market could suddenly crash.
My view: Don’t put all your money on 'rate cuts'! Keep 30% in cash, in case of a crash, you'll be ready to buy at the bottom; if it rises, you won't miss out.

What should we do now?

Mainstream coins as a base: 60% of funds to buy Bitcoin and Ethereum, this is the core of 'capital preservation + guaranteed profit';
Small coins for high returns: 20% to buy Solana, Avalanche and other 'elastic kings', during the interest rate reduction cycle, they may rise 20% in a day;
Cash for opportunities: Keep 20% in cash, in case of a market panic and crash, directly buy 'blood-stained chips' at the bottom.

This round of interest rate cuts may be the closest ordinary people have come to 'financial freedom'—but the premise is that you must not be frightened away by short-term fluctuations, nor blindly chase high prices.

Don't wait until your contract is liquidated to remember me! Follow Long Ge, and I will help you escape the top 3 seconds in advance next time!