The major central banks worldwide (excluding Japan) are beginning to loosen their monetary policy. The era of cheap capital is making a comeback, and this is inevitable.

Many people, upon hearing this news, first think: flood the market with liquidity, and the spring for small-cap tokens is here? But honestly, this round is completely different from the past.

**Where will the money go?**

Logically, it makes sense—traditional yields are declining, so funds will inevitably seek higher returns. But the game rules in the market have changed. Institutions have become the true helmsmen; they won't pour large sums into highly risky small-cap tokens. What's their first choice? Assets like Bitcoin, known as "digital gold," and Ethereum, which has an ecosystem and can generate yields. These are now seen by institutions as new "hedging tools." Funds are smarter now and more concentrated.

**Why is this round different?**

Don't expect a simple replication of the previous bull market with widespread surges. The market has now fully split into three camps:

First, institutional channels. Tools like Bitcoin spot ETFs and Ethereum spot ETFs act like massive siphons, directly drawing liquidity from the traditional financial world toward core assets. Second, the logic of real yields. DeFi projects and real-world assets (RWA) that can generate continuous cash flow have become safe harbors for smart money. Third, "story coins" are becoming less popular. Funds are no longer buying into whitepapers and stories but are instead looking for projects with actual products, real users, and genuine revenue.

**What’s the next step?**

1. Hold onto Bitcoin and Ethereum—these are your tickets through market cycles.
2. Allocate some funds to discover "new frontiers," especially focusing on Layer2 ecosystems and DeFi infrastructure—areas that are genuinely creating value and attracting institutional attention.
3. Take it slow, don’t rush. Liquidity takes time to transfer from central banks to the crypto markets. Don’t sell all your holdings before the market truly starts to move.

In simple terms: the rougher the waves, the sturdier the ship. But more importantly, you need to recognize which projects are future flagships and which are just floating debris.

With this round of liquidity injection, do you think the market will see a broad rally, or will only core assets surge? What are you currently focusing on? Feel free to share in the comments.