The Federal Reserve's upcoming meeting has everyone in the market asking the same question—will there be a rate cut, and can cryptocurrencies and other digital assets usher in a new upward trend?

First, let's clarify something: we are actually already in a rate-cutting cycle. This isn't something that can be decided by a single decision; rather, the entire cycle is pushing the market forward. Only when this cycle fully ends will the market rhythm truly change.

Another important detail is that this rate-cutting cycle is different from previous ones. First, the Fed paused its balance sheet reduction, and only afterward did it start cutting rates. Stopping the balance sheet reduction means no longer draining liquidity from the market, and combined with rate cuts, it effectively eases pressure on the entire market.

If tonight's meeting signals an expansion of the balance sheet, it would really be a "water release." There will definitely be short-term volatility, but in terms of the overall cycle, the outline is becoming increasingly clear.