A historic turning point has just occurred—the Federal Reserve has completed its last rate cut for 2025. But what’s truly worth paying attention to isn’t this “clear signal” move, but rather the plan starting from January 2026: approximately $40 billion in Treasury bond purchases each month.

This 25 basis point rate cut? The market has already priced it in long ago, with no suspense. So the calm reaction you see is the normal response. The key message is the signal conveyed through the dot plot—the Fed is unlikely to cut rates again in 2026. The interest rate policy is temporarily on pause, but the story of liquidity is just beginning.

**So, what does $40 billion per month mean?**

Don’t be fooled by official phrases like “technical adjustment.” Essentially, this is quantitative easing in disguise. While the goal is to replenish bank reserves and prevent liquidity shortages, what’s the result? The fundamental money supply in the financial system will continue to grow. In simple terms, it’s like opening the floodgates—just the flow isn’t as rapid.

**What does this mean for the crypto market? Let’s look at two stages.**

In the short term, over the next few weeks, the market is likely to continue fluctuating. After all, the expectation of “stopping rate cuts” is still being digested, and capital rotation and sentiment battles will dominate the trend. Talking about a “Christmas rally” now is mostly about existing funds shifting between sectors.

But looking out to 2026? Once the monthly bond purchase plan is officially launched, dollar liquidity will experience a stable increase in supply. A quick look at history shows that abundant liquidity has always been the most solid foundation for a bull market in risk assets. This isn’t mysticism; it’s the operational logic of the dollar system.

**What is needed now? Strategic patience.**

At this stage, it’s like stockpiling ammunition for a prolonged battle. Smart money won’t wait until 2026 when the floodgates fully open and asset prices skyrocket to the moon. Positioning early and waiting for liquidity expectations to materialize is the rational strategy.

The market never lacks opportunities; what’s missing is the people who understand the trend. The “last rate cut” in 2025 isn’t the end but the prelude to the next cycle.