Finance Minister Besente’s recent remark, “The pressured economy needs a rate cut for stimulus,” has sparked a familiar feeling among many. The fear index has climbed out of the extreme fear zone, and market sentiment is starting to warm up. Behind this wave of actions, where is the liquidity heading? How should retail investors respond?

# # The logic behind liquidity easing is simple, but don’t expect too much

The finance minister’s comments align with Federal Reserve policy expectations, and the logic behind this combination is straightforward: when the economy is under pressure, policy needs to be eased. When there’s more money in the system and traditional assets can’t absorb it all, high-volatility crypto assets naturally become targets for hot money. Recently, we’ve seen institutions frequently transferring tens of thousands of ETH—smart money has already moved.

But stay calm—what the market trades is always expectations, not the actual facts. Rate cut expectations can ignite short-term sentiment, but when the moment of truth arrives, it might be “all the good news is priced in.” History doesn’t lie: Bitcoin has both surged and crashed during rate cut cycles. Last August, when PPI data beat expectations and rate cut expectations cooled, crypto prices immediately dropped below $90,000. So don’t just FOMO in on any rally.

# # Three moves for retail investors: don’t be the bagholder

**First move: Stay calm, don’t chase the highs**

The market is still swinging in the fear zone; rushing in now could make you cannon fodder. Institutions build positions with large capital in batches—if you go all in at once, you might get wiped out before the dawn. Remember, the finance minister’s comments don’t mean an immediate rate cut; there will be back-and-forth.

**Second move: Don’t mess with your core positions**

BTC and ETH are the big ships—when liquidity comes, they float first. Institutions allocate to ETFs and spot positions for their long-term value storage logic. If you’re already holding, hold on and don’t get shaken out by short-term volatility.

**Third move: Keep some ammo, wait for opportunities**

Stablecoins are your arsenal. If the market surges on good news and then pulls back, or if there’s a sudden crash, the smart play is to build positions in batches. For example, buy a portion if it drops 30%, add more if it drops 40%. Never go all in—leaving room is the only way to survive till the end.

# # This is just the appetizer

The real show depends on actual Fed actions and inflation data. A few key signals to watch: institutional ETF capital flows, policy implementation progress, and those undervalued altcoins.

Rate cut expectations can bring a wave of rallies, but don’t mistake expectations for reality. What retail investors should do most is stay calm when others are greedy, and have ammo ready when the market is fearful.