The latest Federal Reserve statements have sparked market attention. The official governor explicitly pointed out that there could be a cumulative rate cut of 150 basis points by 2026, which is approximately a 1.5% reduction, equivalent to 5-6 regular 25bp cuts, or even a single 50bp move. Compared to the market's previous expectation of 100-125bp, this signal is clearly more dovish.

The message is very clear: inflationary pressures have stabilized, and a loosening liquidity cycle is about to begin.

For cryptocurrencies, this is undoubtedly a major positive. Historically, rate cut cycles are often accompanied by liquidity flooding, and risk assets tend to lead the way. Remember the super rally of 2020-2021? Zero interest rates plus liquidity injections pushed the entire market to new heights. Although this time won't return to zero rates, the current rate range of 5.25%-5.50%, potentially dropping to around 3.75%-4.00% by the end of the year, is already quite aggressive.

Institutions won't delay their actions. Bitcoin, as digital gold, will be reevaluated first, followed by Ethereum benefiting as well. High-quality projects in Layer1 and Layer2 ecosystems will also rise. Sectors like DeFi, RWA, AI may experience another round of hot trading.

In terms of investment strategy, core assets like BTC and ETH are best to hold. Although short-term volatility is inevitable, based on the logic of rate cuts by 2026, new highs are unlikely to be reached. If your portfolio allows, consider gradually adding some highly elastic assets, such as Solana ecosystem projects, AI concepts, RWA directions, or even some overlooked old projects—perhaps they could turn around.

However, during the rate cut cycle, there will inevitably be disruptions like corrections in the US stock market and fluctuations in economic data. Keep some cash on hand; if a wave of extreme panic hits in the first half of the year, that will be the best window for adding positions.