So here's the thing—rates still have room to come down significantly, but the Fed's not gonna do it on a whim. The key is nailing down solid proof that inflation's actually retreating, not just wishful thinking.

This is crucial for anyone watching markets. When the Fed starts cutting rates aggressively, liquidity flows back into risk assets—and that includes crypto. But the move can't happen until we see the data. We're talking consistent CPI readings, core inflation cooling, wage growth stabilizing—the whole package.

The messaging here matters because it sets expectations. If inflation numbers keep disappointing, don't expect the rate cuts traders are pricing in. Conversely, if we get a few solid months of retreat in price pressures, the Fed could shift into a more dovish stance faster than people think.

For traders managing crypto positions, this is your macro backdrop. Keep eyes on upcoming inflation data and Fed communications. The narrative around "how much lower can rates go" isn't just theoretical—it directly impacts capital flows and risk appetite in the broader market.