What tricks is the Fed going to pull this week? A rate cut is highly likely, but Powell might have to put on a stern face and talk tough—that’s what the market calls a “hawkish rate cut.”

Sounds contradictory? It’s actually the result of policy games. On one hand, they cut rates to ease liquidity, on the other, they warn you not to get too excited too soon. Why? Because there are big internal disagreements at the Fed: the doves want to keep easing, the hawks are pushing for tightening. So, the chair will likely cut rates this month, then quickly turn around and hint “don’t expect another cut soon,” just to appease the hawks.

What does this mean for crypto? A rate cut itself signals looser liquidity, which is bullish for risk assets like Bitcoin in the long run. But hawkish comments will pour cold water on the market, so the rally won’t be as wild. Short-term volatility might spike—don’t expect an immediate moonshot. Still, the liquidity tap is being loosened, and the overall direction isn’t turning bad.

How should regular investors respond? Three key points:

First, don’t overreact. The market gets crazy volatile before and after news is released—the more you trade, the more likely you get burned. Staying calm and watching is often the best move.

Second, focus on the core logic—a rate cut is a rate cut, and capital will ultimately look for a home. Hold onto your core positions, and don’t get distracted by the noise.

Third, keep some ammo ready. If hawkish talk creates a dip, that’s the perfect time to scale in gradually.

Bottom line, let them put on their show; our main job is to hold our own positions. Long term, the tide will rise; short term, just stay steady and don’t capsize. Be patient—the wind will come.