The Federal Reserve's policy signals have new indications. According to the latest news, there is a possibility of 3-4 rate cuts this year, which directly means a decrease in USD financing costs and a significant improvement in market liquidity.
For crypto assets, this signal is quite crucial. When the US dollar weakens and borrowing costs decrease, investors tend to allocate funds to higher-risk, higher-return assets. Historically, each rate cut cycle has shown strong upward momentum for Bitcoin—this is not a coincidence but an inevitable result driven by liquidity.
How will it unfold specifically? Abundant liquidity → US dollar depreciation → funds seeking new growth points → Bitcoin and other digital assets becoming absorption pools. Coupled with high-volatility assets like Dogecoin, in an environment of increased risk appetite, they often achieve larger gains.
The key is that this cycle is different from previous ones—participation of institutional investors has greatly increased, and market infrastructure is more mature. If the rate cut expectations are truly realized, the scale of capital inflow into digital assets could far exceed previous levels. Short-term fluctuations are inevitable, but the medium-term trend is worth watching.
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The Federal Reserve's policy signals have new indications. According to the latest news, there is a possibility of 3-4 rate cuts this year, which directly means a decrease in USD financing costs and a significant improvement in market liquidity.
For crypto assets, this signal is quite crucial. When the US dollar weakens and borrowing costs decrease, investors tend to allocate funds to higher-risk, higher-return assets. Historically, each rate cut cycle has shown strong upward momentum for Bitcoin—this is not a coincidence but an inevitable result driven by liquidity.
How will it unfold specifically? Abundant liquidity → US dollar depreciation → funds seeking new growth points → Bitcoin and other digital assets becoming absorption pools. Coupled with high-volatility assets like Dogecoin, in an environment of increased risk appetite, they often achieve larger gains.
The key is that this cycle is different from previous ones—participation of institutional investors has greatly increased, and market infrastructure is more mature. If the rate cut expectations are truly realized, the scale of capital inflow into digital assets could far exceed previous levels. Short-term fluctuations are inevitable, but the medium-term trend is worth watching.