Recently, the Fed announced a 25 basis point rate cut, which has had a profound impact on the crypto assets market. Although rate cuts are often seen as Favourable Information, in reality, it is more like a double-edged sword hanging over the heads of the encryption market.

Fed Chair Daly emphasized that the current monetary policy remains in a 'moderate tightening' state, and may continue to lower interest rates in the future. However, the core of decision-making remains 'risk management'—both to guard against a hard landing of the economy and to be vigilant against a rebound in inflation.

In the short term, interest rate cuts can indeed release liquidity and may drive funds towards the crypto market. Bitcoin is expected to stabilize around the $120,000 mark, while other crypto assets may also experience rotational increases. However, in the long run, if economic indicators improve, the pace of interest rate cuts may slow or even pause, and the 'liquidity bonus' enjoyed by the crypto market could quickly dissipate.

Daly holds a 'cautiously optimistic' attitude towards crypto assets, neither actively supporting nor suppressing this emerging industry. This means that the future direction of the crypto market will depend more on the technological advancements within the industry and the clarification of the regulatory environment, rather than solely relying on the policies of the Fed.

For crypto asset investors, it is important to remain calm under the current circumstances and avoid chasing highs. It is advisable to pay attention to key economic data such as unemployment benefits, CPI, and non-farm employment, while appropriately allocating to stablecoins or dollar-pegged tools as hedging assets to reduce investment risk.

It is worth noting that interest rate cuts are merely a catalyst for market changes, not a decisive factor. Investors should closely monitor the remarks of Fed officials, particularly Chair Daly regarding crypto assets regulation, as this information may have a more profound impact on the market.

Overall, the Fed's interest rate cut decision has brought short-term opportunities to the crypto market, but it also comes with long-term challenges. Investors need to remain vigilant and closely monitor market trends and policy changes to seize opportunities in this uncertain market.