As soon as Powell's speech was released, the opportunities in the crypto space were almost laid out in front of us! Today, we won't use convoluted professional terms, but instead break down the core information in plain language to ensure everyone can understand it clearly:
First, the Federal Reserve is highly likely to lower the interest rate by 25 basis points this month! What signals are hidden behind this? Simply put, the funds in the market will become more abundant — the money that everyone hesitated to invest before might shift to the crypto space, after all, everyone wants to find a channel that can earn some returns? It's better than letting the money sit idle.
Secondly, the process of balance sheet reduction is coming to an end! The Federal Reserve has been 'withdrawing' funds, and now it is finally about to stop. Next, it may even gradually 'inject' liquidity. Experienced players know that historically, every time the balance sheet reduction ends, the cryptocurrency market tends to benefit. As long as liquidity increases, it becomes difficult for token prices not to rise, and this is supported by historical patterns.
Third, there is no need to worry about sudden policy tightening! The current employment and economic situation is not that bad, and inflation is not widespread; it is mainly driven by tariffs. This eliminates the risk of 'sudden policy tightening,' so we don't have to worry unnecessarily, nor do we need to fear sudden market cooling.
Let's talk about the impact on the cryptocurrency market, summarizing it in three straightforward statements: Opportunities have arrived, it's time to enter, and maintain a steady mindset!
First, liquidity is going to loosen. Once the balance sheet reduction ends, the funds in the market will gradually increase. At that time, it's not just the stock market that will benefit; the cryptocurrency sector, which easily reacts to capital injections, will definitely attract a lot of funds—whether it's mainstream coins like Bitcoin and Ethereum or small coins with actual value, they could all be driven up.
Secondly, the expectation of interest rate cuts is right here, which acts as a reassurance for the market. Many people were previously hesitant to enter, but now, riding on this wave of expectations, they might act decisively. As more people buy in, prices will naturally rise; this is a very simple logic.
However, I must remind everyone that Powell has not made definitive statements; policies will ultimately depend on data, and are not 100% certain. Therefore, the market may experience fluctuations in the short term, with some people panicking and selling, while others rush to buy, causing token prices to fluctuate. But we must keep an eye on the bigger picture; the upward trend is already quite obvious. Whether it's new projects in the primary market or token trading in the secondary market, opportunities are hidden everywhere.
Lastly, let me say a heartfelt truth: when opportunities arise in the cryptocurrency market, it's not about how high the trading frequency is, but who can remain calm and hold onto their assets. Powell has opened the door to opportunities this time, so don't hesitate and miss out—those who should enter should act quickly, and those who should wait should be patient. Let's wait for the market to come and share the spoils!
