This round of Fed action—while the market is focused on how many rate cuts are coming—the real thing to watch is that they’ve officially confirmed a return to the rate-cutting track.

For the crypto world, it’s not just about price fluctuations; it’s a signal that the entire set of game rules is starting to loosen.

**What does the rate cut restart really mean?**

When rates start to move downward, two things usually happen: the economy starts to weaken, with cooling employment and corporate profits; at the same time, capital costs drop, opening up more room for market liquidity expectations, and the discounting logic for risk assets also changes.

If you look at historical data, you’ll find that 3 to 12 months after a rate cut cycle begins, high-volatility assets like stocks and crypto usually don’t perform too badly. But there’s one characteristic—there’s often a sharp whipsaw within the first month after the announcement, because leveraged positions and market expectations are often on the wrong side, requiring a round of shakeout before regaining balance.

**Threefold impact on BTC, ETH, and altcoins**

**First: The valuation logic will change**

As rates go down, expectations for future returns and narratives are extended. Long-term capital becomes more willing to allocate to growth and risk assets. Benchmark assets like BTC and ETH are often the first to benefit and get repriced by the market.

**Second: Liquidity expectations heat up**

If the market believes more easing policies are coming, funds will start to flow out from conservative positions like money market funds and treasuries, moving into stocks and crypto. This doesn’t necessarily mean immediate big green candles, but it does mean that with each deep dip, there will be buyers willing to step in—

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