Is this rally the real deal, or just a dead cat bounce before another drop?

The probability of a 25-basis-point rate cut by the Fed in December is approaching 90%, with the market all but pricing in the start of an easing cycle. For the crypto space, this signal is far more than just a short-term boost.

**Liquidity is coming back.** When yields on traditional assets drop, hot money naturally chases high-volatility, high-return opportunities. Blue-chip coins like Bitcoin and Ethereum usually benefit first. A weaker dollar only strengthens the incentive for new capital to enter.

**An altseason might really be on the way.** Every time rate cuts begin, smaller coins tend to go wild. Trading volumes surge, capital rotation accelerates, and hype-driven sectors explode one after another. Past patterns suggest this time will be no exception.

**But don’t just focus on the upside—risks are building too.** Rate cuts can send leverage usage soaring, making short-term price swings even more erratic. Until the uptrend in blue-chip coins is confirmed, position management and disciplined profit-taking are your lifelines. Chasing the top might feel good for a moment, but drawdowns can be brutal.

Bottom line: a rate cut isn’t just a shot of adrenaline—it could mark a turning point for the entire cycle. Market sentiment is warming, capital is coming back in, and a new leg up may be forming. This isn’t wishful thinking.

Right now, the smart move is to closely monitor blue-chip price action, sector rotation, and on-chain capital flows to position yourself early. Don’t wait until the rally is in full swing to jump in—you might end up being the exit liquidity.