Ethereum and mainstream cryptocurrencies have recently become focal points again, and you need to understand the big story behind them.

A major signal has just been released: macroeconomic policies in the coming years may shift. According to the latest expectations, if relevant policy adjustments are implemented, significant rate cuts could become the main scenario — this is not temporary stimulus but a systemic overhaul of the entire financial system.

What does this mean? In simple terms, the cost of borrowing will decrease significantly. This effect will cascade through corporate financing, the stock market, and real estate. Increased liquidity and lower capital costs create an environment where risk assets often open new investment windows. As a liquidity-sensitive asset class, the crypto market will directly feel this impact.

Key points to watch regarding rate cut expectations:

First, the establishment of policy expectations itself will preemptively change market pricing. The market won't wait for rate cuts to actually happen but will absorb this signal in advance. That’s why discussions at the policy level can quickly influence market sentiment.

Second, historically, every major rate cut cycle has been accompanied by a large-scale migration of funds from traditional fixed-income products to equities and alternative assets. ETH and other mainstream cryptocurrencies are likely to benefit from this capital shift.

Furthermore, increased global liquidity will push up commodity prices and asset prices, thereby influencing inflation expectations. In this process, cryptocurrencies are often viewed as a tool for inflation hedging.

It’s important to note that while these macro expectations are clear in direction, actual implementation will still require time for validation. Short-term market volatility is inevitable. The key is to understand the underlying logical framework — liquidity increase → asset prices rise → risk appetite improves — this chain is generally friendly to crypto assets.