The latest monetary policy press conference from the Federal Reserve has already provided key answers:

Rate cuts continue to advance, liquidity is flowing back, the policy tone is dovish, but the future path remains flexible.

The focus of this press conference is not on 'the rate cut itself', but on the underlying logical changes — this is the core that influences the direction of the crypto market.

1. Rate cut realization: The United States has begun to acknowledge 'growth pressure'.

A rate of 3.50%–3.75% means one fact:

The U.S. economy is experiencing substantial cooling, and the Federal Reserve no longer has the confidence to maintain high interest rates.

The official statement acknowledges that the job market is starting to weaken, and inflation has shifted from 'structural stickiness' to 'short-term shock' (driven by tariffs).

This shifts the Federal Reserve's focus from 'fighting inflation' to 'maintaining growth'.

Means for the market:

The suppressive force on risk assets is disappearing.

II. Liquidity signals: Not QE, but the direction is completely aligned

The Federal Reserve will start buying about 40 billion dollars in short-term government bonds from mid-December.

The official emphasizes 'not quantitative easing', but the market does not look at labels, only at effects:

  1. Banking system reserves are rising

  2. Short-term financing pressure on the market is easing

  3. Dollar liquidity is no longer tight

The practical significance is:

Marginal liquidity improvement has started.

For the crypto market, the direction of liquidity is more important than policy rhetoric.

III. Future path: No commitment to continuous cuts, but 'doves are in the ascendancy'

Powell clearly stated:

No preset rate cut path, everything depends on the data.

This is a typical 'dove with stability':

  • Not committing to future rate cuts is to avoid giving the market overly optimistic signals

  • But the current actions and attitudes are obviously more moderate than expected

That is to say:

The Federal Reserve wants to cut interest rates, but does not want you to feel they are eager to do so.

From market experience:

This kind of statement often occurs in the early stages of the easing cycle.

IV. Impact on the crypto space: The real turning point is not the news, but the capital cycle

1. Medium to long term: Strongly favorable

  • Rate cut = decrease in funding costs

  • Liquidity warming = increase in market risk appetite

  • Dollar pullback = BTC, ETH and other non-dollar assets benefit

Funds will gradually flow from bonds and the money market to high Beta assets, with crypto assets naturally at the forefront.

2. Short term: possible initial fluctuations

The reason is simple:

The market has pre-traded 'rate cut expectations'.

After the policy is implemented, there may be short-term profit-taking, forming a high-level washout.

3. The real market comes from: continuous easing expectations + liquidity release

If:

  • Inflation continues to decline

  • Employment continues to cool

  • The Federal Reserve will release more dovish signals in the next 1-2 months

    That is the real upward trend segment of the crypto market.

V. Summary:

The overall direction given by this meeting is:

1. The Federal Reserve confirms the rate cut cycle is still ongoing

2. Marginal liquidity recovery

3. Clear thinking on policy soft landing

4. Overall favorable bias towards risk assets

5. The core trend of the crypto market is 'liquidity improvement'

In summary:

The benefits do not explode in an instant, but quietly start a cycle.

The real market belongs to those who layout in advance, not to those who react only when news comes out.