The new Federal Reserve chair signals a significant rate cut, and the market immediately erupts. Bitcoin and Ethereum are showing signs of movement, as if a new bull market is just around the corner. But is it really that simple?

A rate cut means abundant liquidity and lower capital costs. From this perspective, cheaper funds flowing into the cryptocurrency market are indeed a positive sign. But don’t forget, every statement from politicians is calculated—aiming for votes, expectations, and market sentiment. Wall Street is doing the same. The moment the news is released, market frenzy is inevitable, and a short-term rebound is almost certain. But how far this rebound can go, and how long it will last, is the real question.

History shows that rapid surges are often followed by huge waves. Investors who chase gains blindly are easily left holding the bag. This is not alarmism, but the normal state of the market. So, the current strategy should be: stay cautious, avoid going all-in immediately, and don’t let short-term gains cloud your judgment.

What exactly should you do? First, keep a close eye on the Federal Reserve’s subsequent actions and specific timetable; second, wait until the market direction is clear before deciding to enter; third, if you want to position yourself, prioritize mainstream coins with solid fundamentals and stay away from highly volatile altcoins.

The crypto market always reacts before the news. Smart investors anticipate and position early, ordinary investors follow the news and jump on the bandwagon, and those blindly following often end up as the last bagholders. Rate cut expectations are just a signal; the real opportunity lies in how correctly you interpret this signal. Wealth doesn’t enter impatient pockets; making money in crypto still depends on understanding and patience.