"When the bell tolls for the Federal Reserve's interest rate cut, the crypto world’s printing press is already roaring—this time, Ethereum is set to take everyone on a rocket ride!"
Interest rate cuts ignite arbitrage waves, making the crypto world a new hunting ground for capital.
Recently, the Federal Reserve's interest rate cut expectations have been like a spark, igniting global capital's enthusiasm for "finding price differences." Traditional Wall Street asset management giants like Legg Mason and Aberdeen, which were thriving in Brazilian Real and South African Rand, have now shifted focus—cryptocurrency, especially Ethereum, is becoming the perfect combination of "risk hedging + excess returns" in their eyes.
Why? Because historical experience is too obvious: During the last interest rate cut cycle by the Federal Reserve in 2019, Bitcoin surged from $3,000 to $14,000, nearly quintupling! This time, the expectation of a weaker dollar is even stronger, and arbitrage funds may directly skip traditional emerging markets and treat the crypto world as the main battlefield.
Ethereum with a market value of 500 billion: State governments in the U.S. have personally "certified" it.
What's crazier is that just after Ethereum broke through a 500 billion market cap, the state governments of New Hampshire, Texas, and Oklahoma quickly passed legislation allowing public funds to invest in crypto assets! What does this mean? Previously, it was private equity giants like Grayscale and BlackRock making purchases, but now state-level financial funds can directly enter the market, essentially giving Ethereum an "institutional-level asset" official certification.
For example: If New Hampshire really uses pension funds to buy ETH, the compliance barriers will be shattered—other states will follow suit, and pension funds, university endowments, and charitable funds will flood in. At that point, a 500 billion market cap will not be the end, but the starting point.
Interest rate cuts + state government buying = "threefold impact" in the crypto world.
The current situation is very much like an enhanced version of the 2019 interest rate cut cycle:
Federal Reserve interest rate cut: Dollar depreciation raises the valuation of non-dollar assets, and cryptocurrency is a natural hedge;
State government endorsement: Public funds entering the market break compliance bottlenecks, and institutions no longer buy "secretly";
Historical pattern: During interest rate cut cycles, Bitcoin rises 5 times, and Ethereum may be even stronger.
Qingyao's view is very straightforward: This is not an ordinary market, but a threefold resonance of "macroeconomic policy + institutional funds + government endorsement." If you don't position yourself now, it's equivalent to missing the most profitable capital wave of 2025.
Next step: Keep an eye on these 3 signals, don't be a 'leek'!
September Federal Reserve meeting: The interest rate cut is the trigger, the dollar drops 1%, and crypto assets may rise 10%;
Grayscale/BlackRock holdings: If these giants increase their ETH holdings, the market's FOMO sentiment will explode;
State government buying: If New Hampshire or Texas publicly buys ETH, it will signal the complete realization of compliance.
To put it bluntly: The crypto world has never been a "slow bull," but rather a "rocket bull." The Federal Reserve's interest rate cut cycle combined with Ethereum's compliance is filling the rocket with fuel. Getting on board now may feel a bit bumpy, but if you don't get on, you'll just watch others count their money next year.
Follow Qingyao, the next article will teach you "how to use ETH to hedge against the depreciation of the dollar during the interest rate cut cycle, and achieve annual returns that outperform 90% of institutions!"