If the Federal Reserve truly restarts interest rate cuts, it will be a double-edged sword for the crypto market.

First, the good news: market expectations for rate cuts have already been partly priced in. BTC might surge short-term, targeting the pressure level at $94,000. More importantly, if the Fed also signals an expansion of its balance sheet, injecting liquidity directly into the market, the current system leverage ratio has already dropped from 10% to 4-5%. In this healthy low-leverage environment, inflows of capital will be the real driver of growth.

But don’t get too optimistic. If Powell’s speech leans hawkish—for example, hinting at a possible pause in rate cuts—the bulls could be in danger. If BTC drops below $91,000, the liquidation of long positions alone could trigger a selling pressure of $972 million. So, this move can be watched for short-term entertainment, but chasing highs should be done with caution. The old rule of "buy the rumor, sell the fact" has never failed in the crypto space.