The Federal Reserve signals a rate cut, and the liquidity turning point has already emerged at the end of the year. On December 31, the market was stunned after the release of the Federal Reserve meeting minutes. Two key points cannot be missed: first, the FOMC reached a consensus on rate cuts in December, although officials have differing views on economic risks, the direction is clear; second, if inflation falls as expected, there will be sufficient reason to continue cutting rates. What does this mean? Global liquidity is about to enter a new easing cycle, and high-volatility assets like cryptocurrencies will benefit first.

The logic is actually simple—once the Federal Reserve cuts rates, the attractiveness of the US dollar declines, and funds will inevitably seek new destinations. Cryptocurrencies, due to their high return expectations and high risks, have always been the preferred target for "seeking high yields" funds. Many of the previous gains in Bitcoin and Ethereum have already priced in this rate cut expectation. Now, the minutes reinforce the logical chain of inflation falling → rate cuts happening, which is like giving a strong boost to bullish investors.

Looking ahead in the coming weeks, don’t underestimate the significance of the year-end period. Liquidity itself is relatively ample, plus the support of policy signals, Bitcoin should quickly find a breakthrough in the range of 87,000 to 89,500. Ethereum will not fall behind; after holding the 3,000 level, it should follow the upward trend. Investors are advised to identify key support levels for entry and pay close attention to whether institutional fund inflows after New Year’s Day will trigger a surge in trading volume. Of course, a technical correction caused by short-term profit-taking may occur at any time, so be mentally prepared. But from the broader context of loose liquidity, the medium- to long-term bullish trend remains solid, and there’s no need to be overly pessimistic.