In early January, signals from the Federal Reserve management indicated that there will be at least 150 basis points of rate cuts in multiple steps by 2026. Once the news broke, the market was energized. The underlying logic behind this combination of measures is quite clear: creating jobs, stabilizing prices (with core inflation anchored at 2.3%), and the primary goal of easing monetary policy to stimulate the economy.

For the crypto market, this is the trigger.

Why? Because rate cuts essentially mean market liquidity easing. When cheap money is everywhere, where will smart capital flow? It will definitely rush toward high-risk, high-reward areas. Cryptocurrencies, as "digital gold," have always been direct beneficiaries of liquidity cycles.

Numbers don't lie. Look back at history: during the Fed's 75 basis point rate cut in 2019, BTC surged from $3,500 to $14,000, a 300% increase; in the zero-interest-rate era of 2020, BTC was even more dramatic—rising from $7,000 to $69,000, an over 880% increase; then in 2024, during the mild 50 basis point rate cut, BTC jumped from $40,000 to $110,000, yielding a 175% return.

The pattern is clear—when liquidity arrives, crypto assets never miss out.