Bank of America recently released a research report, saying the market may have to start digesting expectations for a Fed rate cut in January. The timing is indeed quite interesting.

Looking at BTC's recent price action, the 4-hour chart is forming a triangle consolidation pattern, and the MACD histogram is oscillating around the zero line—a classic setup before a directional breakout. Market sentiment is pretty divided—retail investors are still chasing hotspots like inscriptions, but on-chain data shows that large funds are already adjusting their positions, especially those assets that are sensitive to interest rate changes.

If rate cut expectations really start to build, I personally think it makes sense to consider a diversified allocation: half of the portfolio in BTC as a core position, about 30% in ETH to capture higher upside potential, and the remaining 20% in DeFi protocol tokens like MKR that have a strong correlation to interest rates. Of course, this is just an idea—the specifics should depend on your own risk tolerance.

Rate cuts can come unexpectedly, so it's never wrong to be prepared in advance.