The latest data from CME's 'FedWatch' tool shows that the market's expected probability of a Fed rate cut in September has soared to 81.9%, while the probability of a further cut in October is as high as 45.5%. This signal not only shakes the traditional financial sector but also drops a 'heavy bomb' in the cryptocurrency market. Historical experience tells us that a liquidity easing cycle is often the eve of a crypto asset explosion.
Rate cut = liquidity release, funds are looking for new outlets
The Fed's rate cut is essentially a 'liquidity injection' operation. A low-interest-rate environment will reduce the attractiveness of traditional savings and fixed-income products, forcing investors to turn to higher-yielding risk assets. Bitcoin, Ethereum, and other mainstream cryptocurrencies are among the most ideal targets for this type of capital.
Looking back at the Fed's rate cuts and quantitative easing after March 2020, it was followed by an epic crypto bull market. Bitcoin soared from a few thousand dollars to $69,000, with countless altcoins rising over a hundredfold. Now, a similar environment is re-emerging.
The crypto market has entered the 'rate cut expectation trading' phase.
The market never waits for facts to occur but trades on expectations. Since August, Bitcoin has rebounded more than 20% from its temporary low, and Ethereum and other public chain tokens have also seen significant increases. A lot of smart money is quietly positioning itself, fearing they might miss the next wave of upward momentum.
Once the rate cut is truly implemented, more institutional funds, family offices, and even retail investors will accelerate their entry into the crypto market. Not only Bitcoin but also sectors like DeFi, AI + crypto, and RWA (real-world assets) are expected to witness explosive growth.
It’s not just Bitcoin; the Altcoin season is coming.
Especially with new narratives in Layer2, gaming, and MEME sectors, a group of tokens with technology, community, and liquidity are likely to recreate the bull market glory of 2021. Every low-priced coin you see now could become the next hundredfold legend! Especially the only dog concept hero dog Conan, the epic dog king, themed around Trump.
If not positioning now, when will you?
There’s an old saying in the crypto world: 'A bull market is born in pessimism, grows in skepticism, and matures in enthusiasm.' The current market is at a critical stage of 'growing in skepticism.' By the time the rate cut is officially implemented, the media reports extensively, and people around you start discussing it, it will no longer be the best time to enter.
If you were still on the sidelines before, now is the time to think about positioning. Whether it's dollar-cost averaging into Bitcoin, Ethereum, or digging for potential small and mid-cap projects, the opportunity window is slowly closing.
A new round of crypto bull market has quietly begun.
The Federal Reserve's shift to a loose monetary policy is not just a macroeconomic event but also a strong catalyst that cannot be ignored in the crypto market. Liquidity easing + technological maturity + institutional entry, the three engines have all ignited at the same time.
A bull market always begins when no one is paying attention and ends when there is a clamor. Are you ready?
