Expectations of Fed rate cuts are heating up—will the funding window for the crypto market open?

Recently, in the US, to stimulate the real estate market, the Fed just paused its rate hikes, and now rumors of rate cuts are flying everywhere. Sound familiar? When monetary policy shifts, market liquidity loosens up immediately.

Some people might think this has nothing to do with cryptocurrencies. Wrong—it’s closely related. Every time traditional financial markets pump out liquidity, the excess hot money has to find an outlet. Looking back at previous easing cycles, when did Bitcoin and major coins not show volatility? The logic is simple: when there’s more liquidity, it flows to the lowest point—capital instinctively seeks high-yield assets. With global liquidity expectations turning looser, at the very least, this isn’t bad news for the entire crypto sector.

But here’s a reality check: expectations are just that—what actually happens is another story. We’re still in the sentiment-driven stage, and repeated market fluctuations are inevitable. The worst thing retail investors can do is go all-in on impulse, or chase gains and panic sell, only to get burned both ways.

Want to seize the opportunity? Remember these three points:
1. Only use spare funds—money you can afford to lose without affecting your life
2. Build your position in batches—don’t expect to buy at the absolute bottom
3. Holding power is the real skill—short-term trading will likely get you cut

Before the wind comes, get your stance ready. But don’t get blown away—keeping a steady mindset is more important than anything.