Recent movements in the global financial markets are quite interesting. The current U.S. leadership publicly stated that the Federal Reserve should cut interest rates when the stock market is strong. Once this statement was made, the financial world exploded, and the crypto community was also affected. But if you think carefully about the logic behind it, there might actually be a big opportunity for crypto assets.



First, let's talk about what has happened recently. On Tuesday, the current leader openly criticized the current market logic—where good news used to mean stocks go up, but now stocks fall due to concerns about rate hikes. Coincidentally, on the same day, the U.S. Q3 GDP annual growth rate was released at 4.3%, which is a positive signal. But how did the S&P 500 react? Not only did it not fall, but it hit new highs and rose for four consecutive days. This directly confirms that the "abnormal phenomena" mentioned by the current leader are being broken.

Having analyzed the crypto market for many years, my view is straightforward: this is not just a political statement, but a precursor signal that global liquidity is about to "loosen." Why do I judge this way? The core reason is one— the independence of the Federal Reserve is being eroded by political factors, and crypto assets thrive on liquidity dividends.

Some may say that the Federal Reserve has always been independent, and political figures' words don't matter. But there's a detail worth noting: the current leader has already narrowed down the candidates for Fed Chair to 3-4 people, and the nomination could be completed within a few weeks. This is akin to a "loyalty test"—seeing who is willing to implement rate cuts. Moreover, he has repeatedly emphasized lowering interest rates to around 1%, with the clear purpose of easing voters' anxiety over rising living costs.

If the Fed really follows this path and, during a period of improving economic data and high market enthusiasm, actively cuts rates, what will happen? Global financial market liquidity will directly flood the system. Under such circumstances, crypto assets like BTC, as carriers of liquidity, are likely to become a new outlet for capital flows.

Therefore, the true significance of this move is not just political tug-of-war, but that it signals the arrival of an era of abundant liquidity. For the crypto market, this is an opportunity.
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ImpermanentTherapistvip
· 4h ago
I'm a bit tired of the logic of liquidity flooding, but it's not a bad point... The key question is whether the Federal Reserve will really behave obediently. --- The judgment that the Federal Reserve's independence is being eroded is a bit questionable, but the expectation of rate cuts can indeed heat up the crypto market, as history has shown. --- Wait, with a GDP of 4.3%, are rate cuts still coming? That logic is indeed abnormal... Maybe they are really preparing for liquidity. --- Basically, it's a gamble that the Federal Reserve will yield. I want to see who will be the "loyal" candidate for the chairmanship. --- The analogy of BTC as an outlet for liquidity is good, but the premise is that the Federal Reserve will really move... Let's wait and see for now. --- Political manipulation of the Federal Reserve is not the first time, but this time the effort is indeed a bit intense. The crypto circle should be on the verge of action. --- It feels like another story of flooding liquidity, but honestly... if it really happens, there's indeed no stopping it.
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ConfusedWhalevip
· 4h ago
I'm on board with the logic of liquidity flooding, but I feel it's still too early to talk about opportunities. We need to wait until the Federal Reserve takes real action before it counts.
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PanicSellervip
· 4h ago
Haha, finally someone dares to talk about the liquidity logic. I've been pondering this for a while. Once the interest rate cut cycle starts, it's really hard to say whether BTC will benefit or not. The Federal Reserve's "loyalty test" is just ridiculous to hear, but surprisingly, it actually works. Liquidity injection? We've already enjoyed this wave of benefits in the crypto world. Can we turn the tide next time? The key is who takes on the hot potato of Fed Chair. Choosing the wrong person means this game is a waste. Political intervention and independence—it's nice to say there's ample liquidity, but in reality, it's just gambling on policies. GDP at 4.3% sounds good, but the stock market's rise... feels a bit fake. In a low-interest-rate environment, funds need a place to go. BTC is indeed an outlet, but the premise is that people believe it's worth something. This logical chain is smooth, but real implementation probably has to wait. Chasing after it now might just lead to catching a falling knife. Instead of guessing about liquidity, it's better to watch when macro data truly reverses—that's the real confirmation.
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ShibaSunglassesvip
· 4h ago
As soon as the interest rate cut expectation emerged, I knew a new round of liquidity frenzy was about to begin. BTC, get ready to take off!
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