The Federal Reserve's monetary easing strikes hard, and the bull market in the crypto space is on its way.

The Federal Reserve implemented three consecutive rate cuts, with a 9:3 vote confirming a 25 basis point cut, bringing the interest rate down to 3.5%-3.75%. It simultaneously initiated short-term U.S. Treasury purchases to release liquidity, directly injecting a strong boost into the crypto market. The previous rate hike cycle had continuously suppressed liquidity in the crypto space, but now the policy has made a sharp turn to easing. Hot money is bound to accelerate its entry into the high-risk, high-return crypto sector. The core logic behind the rise and fall in the crypto market is indeed a game of liquidity. This wave of funding irrigation will directly loosen Bitcoin, Ethereum, and other core assets.

The policy details hide heavy signals: the statement removed optimistic expressions related to employment, highlighting concerns about economic downturns, and the intention to ease monetary policy to rescue the market is clear. Although the dot plot shows divergence among officials, the median confirms that interest rates will still be cut in 2026. The long-term easing expectations solidify market confidence, essentially guiding funds towards anti-inflation assets, with crypto assets being the preferred choice for hedging against inflation.

Looking back at the Federal Reserve's monetary easing cycle in 2020, Bitcoin soared from $3000 to $69000. Now, with the liquidity easing script being replicated, combined with the current leverage in the crypto market and a rise in risk appetite, the bull market is highly likely to accelerate. A new upward cycle in the crypto space has already begun.