The expectation of the Federal Reserve's interest rate cut ignites hopes for a broad market rally.

On December 8, BlockBeats reported that Chinese crypto analyst Banmuxia injected a dose of 'stimulant' into the financial market. He pointed out that this week, the Federal Reserve's interest rate cut and the resumption of balance sheet expansion will bring tense liquidity back to normal. Moreover, the market may even welcome a broad rally this week or even this month, covering fields such as U.S. stocks, cryptocurrencies, and precious metals.

Banmuxia is not speaking without evidence; he quoted content from his article published on November 11. The article mentioned that the Federal Reserve will very likely stop reducing its balance sheet in December and may start the expansion process, at which point liquidity will return to a normal track, a scenario similar to October 2019. The real moment of substantial liquidity injection may have to wait until May next year when Trump takes control of the Federal Reserve, at which point the large-scale liquidity injection of March 2020 may reoccur.

For investors, this news undoubtedly brings new expectations. In an environment of tight liquidity, the prices of various assets are suppressed, and market confidence is severely impacted. Once liquidity returns to normal, funds will flood into the market like fresh water, driving up the prices of various assets.

However, the market is always full of uncertainty. Despite optimistic predictions from analysts, the direction of the Federal Reserve's policies may still be influenced by various factors. While investors look forward to a broad rally, they must also remain rational and cautious, closely monitoring policy dynamics and market changes, and做好风险防控，以免在市场的波动中遭受损失。毕竟，在金融市场中，机遇与风险总是并存。

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