Recently, Treasury Secretary Yellen's remarks in the United States have caused quite a ripple in the market. She publicly stated that the Federal Reserve should consider cutting interest rates, which is undoubtedly a clear signal of easing. If this expectation materializes, what chain reactions could it trigger in the global financial markets, especially in the cryptocurrency sector?

In simple terms, a rate cut would directly reduce the cost of borrowing in USD, potentially leading to a significant improvement in the global liquidity environment. For the crypto market, this change presents numerous opportunities.

First, investor risk appetite may increase. In a low-interest-rate environment, yields on traditional financial products decline, prompting funds seeking higher returns to flow into riskier but more potentially rewarding assets. Bitcoin, as the "digital gold," will become even more attractive, and the demand for allocating into various risk assets will also rise.

Second, a decrease in market financing costs will trigger a chain reaction. When borrowing becomes cheaper, more institutions and individuals will consider leveraging to enter the crypto market, directly boosting market participation and trading depth.

Another often overlooked point is the dollar depreciation effect. Rate cuts typically weaken the USD's relative strength against other currencies, making USD-denominated crypto assets more attractive on the international stage. For overseas investors, the purchase cost effectively decreases.

Considering these aspects, Yellen's "dovish" stance may be paving the way for improved liquidity in the crypto market.