Interest rates have decreased again. Can the market trend emerge in the coming period? This question is now facing all investors.

Simply put, a rate cut means money becomes cheaper. The cost for banks to borrow decreases, and the financing costs for enterprises and individuals also follow suit. It sounds like good news, but the underlying logic is worth pondering—when the central bank releases liquidity, idle funds in the market will inevitably look for an outlet.

Historical experience tells us that an easing cycle often boosts the valuation of risk assets. Stock markets have risen, precious metals have increased, and cryptocurrencies are no exception. When traditional investment returns decline, investors naturally turn their attention to higher-yielding sectors.

The current question becomes: where will this round of funds flow? The traditional stock market has already risen quite a bit, while the crypto market has performed relatively modestly from the beginning of the year until now, potentially becoming an undervalued sector. Especially core assets like Bitcoin and Ethereum, under the backdrop of accelerating institutional deployment, may usher in new opportunities.

But opportunities and risks have always been twin brothers. Early positioning can seize the first-mover advantage, but jumping on the bandwagon might also lead to being caught in a trap. The key is to clearly understand your own risk tolerance, rather than simply following the trend.