Recent market signals have been quite interesting, and it looks like the Federal Reserve is really starting to loosen up. Officials have explicitly stated that if inflation continues to decline, rate cuts will need to be on the agenda. Currently, the federal funds rate is stuck between 3.5% and 3.75%, which has already made the market feel suffocated — even the Fed's decision-makers admit that this level of tightening might be a bit excessive.

For the crypto world, these past few years have been tough. High interest rates act like a big lock, forcing liquidity into bank deposits and US Treasuries, cutting off the flow of fresh capital into crypto assets. The entire market is eagerly awaiting: is the turning point really coming?

However, the Fed is also quite conflicted. They want to loosen monetary policy but are hesitant to fully let go. If they do move this time, it’s likely to be a preemptive rate cut rather than a bailout. In other words, they’re aiming for a soft landing — gradually easing liquidity to support the market’s forward momentum.

This expectation of rate cuts has a much bigger impact on the market than it appears. It’s not just about new funds entering; the key is that confidence, which has been absent for a long time, is returning. The current market signals are quite clear: expectations for loose liquidity are heating up, and some savvy investors have already started positioning. Opportunities don’t only appear when prices surge; they are seized by those who are already prepared in advance.