Is the Federal Reserve's rate cut window about to open?

In the past couple of days, Treasury Secretary Yellen has been making statements, explicitly saying that the Fed needs to accelerate rate cuts to sustain economic growth. Her words are closely tied to Trump's "Economic Priority Plan," and she has also provided a clear timetable—effects should be seen by 2026. The underlying message is very clear: policy measures are paving the way for liquidity expansion.

The interesting part is that while advocating for rate cuts, they are also scouting for the next Federal Reserve Chair. Is this purely economic consideration? Clearly, it’s about ensuring the direction of monetary policy implementation. The combination of last year's tax cuts and deregulation has been implemented, and now what the market needs is cheap capital.

What does this mean for the crypto market?

Expectations of liquidity injection are heating up. If the Fed truly begins a rate cut cycle, the US dollar will gradually weaken. In this environment, capital will inevitably seek an outlet. Besides the stock market, mainstream assets like BTC and ETH are usually the first choices for inflows—they have sufficient liquidity and are recognized by the market as stores of value. When liquidity is abundant, market sentiment tends to become more volatile, and price swings become more likely.

How to respond?

Don’t go all-in at the first sign of movement. The key is to closely monitor the Fed’s subsequent statements. If the pace of rate cuts really accelerates, consider gradually building positions in spot assets, especially leading cryptocurrencies like BTC and ETH. Smaller coins should be observed first to gauge market direction; there’s no need to rush into heavy positions. Keep enough ammunition ready, and only add when the trend is confirmed. The biggest risk in the market is blindly chasing highs—rationality is the long-term survival rule.