The Federal Reserve (FED) simultaneously implemented a policy combination of interest rate cuts and stopping balance sheet reduction, which has had a significant positive impact on the overall cryptocurrency market. This influence is mainly reflected in several key aspects:

First, in terms of Liquidity and funds, the interest rate cut directly enhances market Liquidity supply and reduces financing costs, prompting more idle funds to seek high-return channels. As a result, crypto assets have become an important choice. More importantly, lower interest rates greatly reduce the opportunity cost of holding interest-free digital assets like Bitcoin, making cryptocurrencies more attractive to investors when traditional financial products' returns are compressed.

Second, from the perspective of Exchange Rate and investment sentiment, the interest rate cut typically leads to a depreciation trend of the US dollar. This supports dollar-denominated digital currencies and increases the buying interest of other coin holders. Additionally, the low-interest-rate environment naturally fosters a more positive risk appetite, encouraging funds to enter the crypto sector and participate in trading activities, thereby driving prices higher.

Over a longer cycle, a loose monetary environment is likely to lead to sustained capital inflows into mainstream crypto assets such as $BTC and $ETH. Market differentiation may become more pronounced, with projects that have practical application scenarios and value attracting more funds. Meanwhile, the FED’s decision to halt balance sheet reduction also sends a clear signal of easing to the market, effectively boosting investors’ confidence and expectations in the crypto sector.

Finally, through the global asset price transmission mechanism, the FED’s policy adjustments will influence global capital flows and investment expectations. Against the backdrop of expanding global Liquidity, cryptocurrencies as an emerging asset class are likely to attract more international capital attention and allocation, thereby providing upward momentum for market prices. #美联储降息展望 $SOL