At 2 AM this morning, the minutes of the Federal Reserve's June meeting will be released, and this key moment cannot be underestimated in its impact on the cryptocurrency market.

From a liquidity perspective: If hawkish signals are released, such as raising interest rates or tightening measures like balance sheet reduction, funds may be withdrawn from the cryptocurrency market, causing prices to potentially come under pressure; if a dovish tendency is shown, choosing to lower interest rates or maintain a loose monetary policy, new funds are expected to flow into the market, possibly pushing prices higher.

Looking at the sentiment aspect: If unexpectedly hawkish statements emerge, it may trigger panic selling; while dovish signals could ignite optimistic sentiment in the market, leading to price increases driven by sentiment.

From a macroeconomic perspective: If loose policies are adopted due to economic concerns, under inflation expectations, cryptocurrencies like Bitcoin may be viewed as inflation hedges, increasing demand and supporting prices; if tightening is chosen when the economy improves, traditional financial markets will attract more funds, leading to a diversion of funds from the cryptocurrency market, cooling down the market.

With the release of the meeting minutes tonight, volatility in the cryptocurrency market is likely to intensify, and investors need to closely monitor policy signals and prepare response strategies in advance.