The tide of global capital is quietly being rewritten by the Federal Reserve's interest rate baton - a rate cut in September has become a foregone conclusion, and the crypto market may usher in a new wave of liquidity feast!

Current CME data shows that the probability of the Federal Reserve maintaining interest rates in September is only 15.4%, while the probability of a 25 basis point rate cut is as high as 84.6%. This means that the monetary policy of the world's largest economy is about to shift, and the valve of the dollar, the "capital reservoir", is loosening.

As a market that is extremely sensitive to liquidity, this wave of rate cuts may bring triple benefits to the crypto market:

Outflow effect: With declining yields in traditional financial markets, institutional funds may seek excess returns through crypto ETFs and other channels.

Risk appetite recovery: Rate cut cycles are often accompanied by the revaluation of risk assets, and Bitcoin's "digital gold" property will be more favored.

Pressure on the dollar index: In a weak dollar environment, the purchasing power of dollar-denominated crypto assets will significantly increase.

Long Ge's View

Two major variables need to be cautious: if inflation data shows fluctuations, it may disrupt the pace of rate cuts; rising geopolitical risks may trigger market risk aversion. My personal judgment is that this rate cut will drive the crypto market to initiate a phase rebound, but a true bull market still needs to wait for the risk clearance in the traditional financial market. #美联储降息预期

When the dam of traditional finance develops cracks, the torrent of digital assets will eventually rewrite the wealth map. "Do you think this rate cut will be the catalyst for Bitcoin to break through its historical highs?

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