A grand drama concerning the global financial landscape is set to unfold in 2025.

On one side is the White House’s urgent need for economic stimulus, and on the other is the Federal Reserve’s money-printing machine. How much energy will this collision generate?

**Policy Pressure and Real-world Dilemmas**

Unemployment has become this year's key indicator. But this time, it’s a bit different—AI is replacing large-scale human labor, and traditional employment-boosting policies seem to be ineffective. The White House’s options are narrowing: if they don’t cut interest rates, how can they stimulate the economy? If they don’t loosen monetary policy, how can they reassure the markets?

Meanwhile, the US national debt has surged toward the $40 trillion ceiling. The debt issue is front and center; printing money to dilute debt might be the most “realistic” choice.

**Will the Federal Reserve Compromise?**

History shows that monetary policy during election years is often “honest about itself.” The likelihood of a hard confrontation between the Fed and the White House is decreasing, and expectations of widespread global liquidity are heating up. Markets are already voting with their feet, and the narrative of a liquidity feast is brewing.

What does this mean? Can this wave of market movements before March continue? Is rate cuts an unavoidable economic choice or an inevitable political outcome?

**Opportunities and Traps in Asset Allocation**

Loose monetary policy brings opportunities but also risks. Historical experience indicates that large-scale liquidity releases are often accompanied by inflation rebounds and asset volatility.

Some see Bitcoin as an inflation hedge. Others turn to alternative options like tokenized gold and privacy coins. The key lies in position management—gradually allocating into inflation-hedging assets and being cautious of liquidation risks from high leverage amid policy swings.

**Monitoring Signals and Decision-Making Advice**

Speeches by Federal Reserve officials are the most direct indicators of market sentiment. Capture changes in policy signals to judge the true pace of liquidity release.

For crypto asset holders, this cycle could be an important window. But the premise is understanding and managing risks. Going all-in on one asset, whether Bitcoin or other tokens, could come at a cost if policies reverse.

**Three questions worth pondering:**

In the context of rising expectations for global liquidity, will the Federal Reserve ultimately compromise to political pressure? This will determine the scale of liquidity; if there is indeed large-scale easing, which assets—Bitcoin, gold, or privacy coins—could emerge as the true winners of this cycle? Is your investment allocation prepared for a potential liquidity tsunami?