The market's expectations for a shift in the Federal Reserve's monetary policy are gradually heating up, and key timing for monetary policy adjustments has come to the forefront. According to the latest news, December 1 will mark the end of the Federal Reserve's balance sheet reduction policy, and this signal forms a policy combination with the market's generally expected interest rate cut cycle.

There has been ongoing market discussion about interest rate cuts for some time, but now that the end date for balance sheet reduction has been clarified, investors need to reassess their asset allocation strategies. The Federal Reserve's end of balance sheet reduction will mean a change in the liquidity environment, which could have a significant impact on the prices of various assets.

A shift in monetary policy often triggers market volatility, particularly in risk assets and the cryptocurrency market. In this context, investors should closely monitor the Federal Reserve's subsequent policy signals and economic data to timely adjust their investment portfolios.

Market reactions during policy shifts are often not linear and may experience increased short-term volatility. However, in the long run, improved liquidity usually supports asset prices, especially in the context of easing inflationary pressures.