Recently, a sensational news has been circulating in the market: incumbent U.S. President Trump has proposed a plan that could lead to "significant rate cuts" in 2026. This is not just a policy slogan; it hints at a potential major shift in the global liquidity landscape.
What does rate cuts mean? The cost of borrowing drops sharply. Corporate financing, mortgages, the stock market—everyone involved along the chain will be impacted by this wave. Trump speaking out at this time is effectively putting pressure on the Federal Reserve from afar, while also planting the seeds for economic expectations in the coming years.
Looking closely at these signals, they are indeed worth pondering:
The timing is anchored in 2026, and the market expectation framework has already been outlined in advance. The emphasis on "significant" is not a routine adjustment but a possible policy reversal. The background points to the current high-interest-rate environment—if a shift occurs, it will be a dramatic reversal of the monetary cycle.
History shows a pattern: rate cut cycles are often accompanied by re-pricing of asset prices. Corporate financing pressures ease, and market liquidity may flood the market, but the pressure on the dollar will also rise. Will it be the same this time? Everything depends on policy implementation after 2024. For now, what we see is just a trailer; the main feature's release date remains uncertain.
So, what should you do with your money? Some are already starting to position early, aiming to buy undervalued assets at low prices. Others remain cautious, worried that after liquidity floods, inflation might rebound. In this uncertainty, risks and opportunities always go hand in hand.
For the crypto market, such macro expectations are especially sensitive. Liquidity-sensitive assets like Bitcoin and Ethereum tend to perform well when rate cut expectations heat up. Meanwhile, some mid- to long-tail coins may also benefit from the liquidity dividend.
So here’s the question: do you see this as just campaign rhetoric to laugh off, or do you believe it’s an inevitable turning point in the economic cycle? If rate cuts actually materialize, how do you plan to adjust your holdings? Will you increase your positions in large-cap coins like BTC and ETH, or proactively position in other sectors that might benefit from abundant liquidity? Feel free to share your thoughts in the comments—let’s analyze the potential wealth trends over the next two years together.
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NotFinancialAdvice
· 13h ago
The expectation of interest rate cuts, well, on the positive side, it's a policy signal; on the negative side, it's election campaigning. Anyway, we'll see in two years.
I believe the logic of liquidity flooding can indeed hold up, and by then, Bitcoin will probably follow suit. But the key question is, who dares to confirm whether Trump's words are serious or just a pie in the sky?
As for holdings, I still prefer major market coins, waiting to see how the 2026 show unfolds.
Forget about long-tail coins; they're too easy to be cut.
The risk of inflation rebound is indeed present, but those who laid out early might not necessarily suffer losses. It's all about betting on policy implementation—whether to bet or not is up to you.
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FromMinerToFarmer
· 13h ago
Really? Interest rates won't be cut until 2026, so we still have to endure high interest rates for the next two years... I think that's just campaign talk, and then we'll have to keep jumping back and forth.
Everyone says liquidity is coming, but I'm still stumbling and cutting losses now, feeling like I can never catch up with this wave.
But BTC really needs to be allocated some, just in case interest rates are really cut, so we won't be empty-handed.
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MEV_Whisperer
· 13h ago
It's still early 2026, let's see how they perform first.
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AirdropHunterXM
· 13h ago
The expectation of interest rate cuts is just hype; the key is to see the Federal Reserve's true stance. Don't fully believe what Trump says just because he talks about it.
Recently, a sensational news has been circulating in the market: incumbent U.S. President Trump has proposed a plan that could lead to "significant rate cuts" in 2026. This is not just a policy slogan; it hints at a potential major shift in the global liquidity landscape.
What does rate cuts mean? The cost of borrowing drops sharply. Corporate financing, mortgages, the stock market—everyone involved along the chain will be impacted by this wave. Trump speaking out at this time is effectively putting pressure on the Federal Reserve from afar, while also planting the seeds for economic expectations in the coming years.
Looking closely at these signals, they are indeed worth pondering:
The timing is anchored in 2026, and the market expectation framework has already been outlined in advance. The emphasis on "significant" is not a routine adjustment but a possible policy reversal. The background points to the current high-interest-rate environment—if a shift occurs, it will be a dramatic reversal of the monetary cycle.
History shows a pattern: rate cut cycles are often accompanied by re-pricing of asset prices. Corporate financing pressures ease, and market liquidity may flood the market, but the pressure on the dollar will also rise. Will it be the same this time? Everything depends on policy implementation after 2024. For now, what we see is just a trailer; the main feature's release date remains uncertain.
So, what should you do with your money? Some are already starting to position early, aiming to buy undervalued assets at low prices. Others remain cautious, worried that after liquidity floods, inflation might rebound. In this uncertainty, risks and opportunities always go hand in hand.
For the crypto market, such macro expectations are especially sensitive. Liquidity-sensitive assets like Bitcoin and Ethereum tend to perform well when rate cut expectations heat up. Meanwhile, some mid- to long-tail coins may also benefit from the liquidity dividend.
So here’s the question: do you see this as just campaign rhetoric to laugh off, or do you believe it’s an inevitable turning point in the economic cycle? If rate cuts actually materialize, how do you plan to adjust your holdings? Will you increase your positions in large-cap coins like BTC and ETH, or proactively position in other sectors that might benefit from abundant liquidity? Feel free to share your thoughts in the comments—let’s analyze the potential wealth trends over the next two years together.