Federal Reserve's "25 basis points" rate cut scam? The return of 1 billion in funds to the crypto market may become the "last carnival"!
The comments from Federal Reserve officials regarding rate cuts have indeed boosted market sentiment, but two points need to be clarified: the current U.S. inflation rate is still above the 2% target, and the Federal Reserve may only take preventive rate cuts rather than large-scale easing. If the rate cut is not as expected, funds may quickly withdraw. Global economic growth is slowing, and geopolitical conflicts may offset the positive effects of rate cuts. Historical data shows that the correlation between crypto assets and risky assets is as high as 0.8; if the stock market corrects, the crypto market is unlikely to remain unscathed.
The flow of funds in European and Asian markets is sluggish, leading to an excessive concentration of global crypto asset pricing power in the U.S. The daily trading volume of XRP is less than 1/10th that of Bitcoin; large inflows may push prices up, but withdrawals may also trigger "liquidity exhaustion."
The return of funds to this digital asset ETP is essentially a short-term phenomenon driven by rate cut expectations and institutional fund replenishment after Thanksgiving, rather than a fundamental improvement in the industry. The current market still faces risks such as policy uncertainty, regional differentiation, and excessive leverage, and investors need to remain cautious to avoid blindly chasing highs due to FOMO sentiment. The institutionalization of crypto assets is a long and difficult road; only by balancing innovation and risk can sustainable growth be achieved.
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