Breaking news, the Federal Reserve is going to make a big move, both cutting interest rates and printing money, this operation is simply going to rewrite history. Cryptocurrencies like Bitcoin, Ethereum, and Litecoin may enter a surge mode.

Just got some hot news, a former big shot from the New York Fed revealed that at this week's Fed meeting, a 25 basis point rate cut is basically a done deal. Even more surprising, they might also announce that starting from January next year, they will purchase $45 billion in government bonds every month. While this isn't pure quantitative easing, the amount of liquidity injected into the market is almost equivalent to directly handing out cash.

What does this mean for the cryptocurrency space? Simply put, more market funds could lead to rising coin prices.

Firstly, the logic is very clear. Lowering interest rates decreases savings yields, making people more inclined to invest their money; purchasing government bonds directly injects funds into the market. With more money in circulation, assets like Bitcoin, which have a fixed supply, naturally have the momentum to increase in price.

Secondly, the expectation factor is crucial. While a rate cut is already anticipated, the move to purchase government bonds may not have been fully digested by the market yet. Real market fluctuations might only occur after the news is officially announced.

Thirdly, hotspots will cycle. Once market funds become ample, besides large-cap stocks, those coins with stories and great potential, like popular projects in the Ethereum ecosystem, as well as conceptual coins like the 'little puppy' p.u.p.p.i.e.s mentioned by Musk, could become targets for capital chasing.

However, it's important to keep a level head. All current optimism is based on expectations, and there are actually differences within the Federal Reserve regarding future policies. Don't forget the common situation of 'buying the expectation, selling the fact'; the more the market is collectively optimistic, the more cautious one should be.

Finally, I want to emphasize again, the above is merely an interpretation of market information and not investment advice. Cryptocurrency is highly volatile and extremely risky; one must think carefully before investing and avoid blindly following trends. Are you stuck? When to increase your position for a bottom buy? Feeling lost and unsure of what to do? Follow me, the chat room will give you ideas. #加密市场观察