The Federal Reserve's Rate Cut Steps Restart: New Narratives and Cautious Expectations in the Cryptocurrency Market
According to the latest economic data and signals from the Federal Reserve, market expectations for the Fed to soon restart its rate cut cycle have significantly increased. This potential shift in macro policy is injecting new narrative logic into the global risk asset market, and the cryptocurrency sector is no exception.
From a historical cycle perspective, a liquidity easing environment is typically viewed as a 'booster' for high-risk assets like cryptocurrencies. If rate cut expectations gradually materialize, they may have two effects: first, weakening the relative attractiveness of dollar-denominated assets, prompting some funds to seek alternative value storage tools like Bitcoin; second, improving the overall risk appetite in the market, bringing a more abundant liquidity environment for the crypto market.
Currently, Bitcoin and mainstream crypto assets have partially reflected this expectation in advance, but subsequent trends will remain closely anchored to the specific pace and magnitude of the Fed's policies. It is important to be vigilant, as there is a volatility window between 'expectation speculation' and 'fact realization,' and market sentiment may quickly switch between optimism and caution.
For investors, while focusing on macro trends, it is advisable to also concentrate on the fundamental progress of blockchain itself. Healthy ecological development, continuous innovation, and application implementation are the fundamental supports for the long-term value of assets. Maintain rationality amid volatility and grasp the core in trends.
Do you think that after the rate cut cycle begins, funds will prefer Bitcoin or Ethereum more? Feel free to share your views.
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Learn something new every day to prevent blockchain fraud.
The cryptocurrency harvesting case on the Xinkangjia platform involved false packaging combined with a pyramid scheme, which in less than 8 months swindled 1.3 billion yuan from 2 million investors, and the process was highly deceptive:
Creating credibility through false packaging: The platform registered shell companies, forged authorization documents from the Dubai Gold and Commodities Exchange, and even hired extras to pose as overseas executives to hold offline summits, falsely claiming to be its Chinese branch. It also forged cooperation agreements with PetroChina, misused experts' images for recommendations, and even mimicked legitimate financial apps for the interface, connecting to fake blockchain browsers, misleading investors into thinking the project was legitimate. It also launched different investment packages, claiming an annualized return of over 365%, and even had promotions offering a Tesla for investments of 500,000 yuan to attract investors.
Pyramid scheme model for new recruit expansion: The platform set up a nine-level structure from "soldiers" to "commanders," with higher levels guaranteeing higher annual salaries, and "commanders" earning over 3 million yuan annually. Investors who brought in new members could receive direct push rewards, and teams could earn commissions based on their levels, with "commanders" enjoying passive income of 1% of the platform's total revenue. Additionally, the platform opened over 300 new recruitment studios nationwide, attracting middle-aged and elderly individuals with free rice, flour, and oil, and using offline brainwashing to complete new recruit expansion.
Mandatory USDT deposits hiding traps: Investors must exchange yuan for USDT to invest, in order to evade regulation. Only 5% of the platform's rebates are cash, while the remainder consists of platform points, and investors must recruit 3 people to register to activate withdrawals. Moreover, all transaction data are fabricated in the backend, making it impossible for investors to verify whether their assets truly exist.
Extracting the last value before collapsing and fleeing: In June 2025, the platform first closed the withdrawal channels, falsely claiming that accounts were frozen and requiring a 10% USDT recharge for tax payments, while also imposing a high withdrawal fee of 50%. Days later, the operator left provocative comments in the group, disbanded all investment groups, and shut down the app and official website. Subsequently, a core team of 23 escaped to a Southeast Asian country and used mixers, offshore accounts, and other channels to transfer funds, making it extremely difficult for investors to recover their assets.
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