Recently, a big news broke! The Federal Reserve is reported to lower interest rates twice in the second half of 2025, leading to a surge of various 'get-rich-quick prophecies' in the crypto space. But what is the truth? How should ordinary people respond?

1. More money means a crazier market?

In simple terms, the Federal Reserve's rate cut means 'opening the floodgates'—the cost of borrowing for banks decreases, increasing the money supply in the market. At this time, everyone has more money, but deposit interest rates are low, so they need to find places to invest and make money.

Why might the crypto space benefit?

  • Historical experience: In 2020, the Federal Reserve printed money like crazy, and Bitcoin skyrocketed from $5,000 to $65,000.

  • Safe-haven demand: When the dollar devalues, Bitcoin is referred to as 'digital gold', becoming a new favorite for the wealthy to transfer assets.

  • Institutional entry: Giants like BlackRock are buying Bitcoin ETFs like crazy, attracting over $150 billion in just the first quarter of 2025.

In simple terms: More money + institutions pouring money + risk-aversion sentiment = the crypto space may welcome a wave of climax.



2. Retail investors are ecstatic? First, look at these three 'double-edged swords'.


1. Good news: A surge of money means altcoins could take off.

  • Bitcoin hitting $150,000?: If the rate cut materializes, the supply of stablecoins has surged by 40% (now over $228.2 billion), funds might flow from Bitcoin into altcoins, triggering a 'altcoin season' market.

  • Meme coin frenzy: Coins like Dogecoin and Shitcoin may be speculated, but remember—after a surge, there is often a crash!


2. Risks: Policy changes are faster than flipping a page.

  • The Federal Reserve may shift from dovish to hawkish: If economic data is too strong, the number of rate cuts may shrink to one, and the crypto space could collapse in an instant.

  • Regulatory crackdown: The US SEC has recently intensified scrutiny on Binance and Coinbase; altcoins may be subject to 'precise strikes' at any time.


3. The tactics of harvesting retail investors have been upgraded.

  • Contract traps: Leverage trading seems to make money quickly, but a single crash can wipe out your entire investment (refer to the March 25, 2025 liquidation event).

  • Fake news tactics: Some projects will use 'interest rate cut benefits' to pump and dump, trapping newcomers as soon as they enter.

3. What should ordinary people do? Remember these three iron rules

  1. Don't go all in!

    Even if Bitcoin rises to $150,000, it will still experience a 30%-50% crash in between. It is recommended to only use up to 30% of your assets to test the waters and keep enough for emergencies.

  2. Only invest in leaders


    Bitcoin: The main battlefield for institutions, high safety but potential gains may not be as high as altcoins.

    Ethereum: The leader in smart contracts, if the staking ETF is approved, it could see another price surge.

    AI track: Coins with real applications, like Solana and Chainlink, are more reliable than purely speculative coins.

  3. Take profits when you see gains

    If Bitcoin breaks through $100,000, altcoins will collectively surge by 50%. Hurry to sell in batches. Remember: In a bull market, making money is about 'holding', while in a bear market, making money is about 'running'.

4. Ultimate prophecy: What will the crypto space look like in 2025?

  • Best-case scenario: Interest rate cuts + continuous inflow of ETF funds, Bitcoin shoots up to $150,000, altcoins double, but this only belongs to a few who positioned themselves early.

  • Most likely scenario: Interest rate cuts are less than expected, the market rises and then falls, Bitcoin oscillates in the $80,000-$120,000 range, and 90% of altcoins go to zero.

  • Worst-case scenario: The Federal Reserve raises interest rates, the dollar strengthens, and the crypto market experiences another '312 crash'.


Summary: The Federal Reserve's interest rate cut is an opportunity, but also a test. Ordinary people should not be overwhelmed by the 'get-rich myths'; understanding signals and controlling risks is key!