White House Council of Economic Advisers Chairman Hassett recently made a direct statement: the Fed may cut rates at the next meeting. This is a bit unusual—normally, the White House takes a “no comment” stance on monetary policy, but this time they’re proactively sending a message, which is worth pondering.

Why the sudden hint?

A few numbers make it clear. US national debt has surpassed $30 trillion, with annual interest payments exceeding $1.2 trillion. Even more concerning, bank reserves evaporated by $3.83 billion in just the past week, and the tightening in market liquidity is plain to see.

On one hand, debt is snowballing bigger and bigger; on the other, there’s a severe shortage of cash in the market. Rate cuts? It’s probably not a matter of “if,” but “when.”

What does this mean for the crypto market?

Once rate cuts happen, the global liquidity valve will loosen again. Traditional capital is seeking new outlets. MicroStrategy’s founder recently predicted Bitcoin’s market cap could hit $200 trillion in 20 years—his logic is to treat Bitcoin as a hedge against sovereign currency risks.

The IMF recently warned that stablecoins could undermine central banks’ control. Flipping this around: digital currencies are vying for dominance in future finance.

There’s big action on-chain as well. Last night, 77.86 million ASTER tokens were permanently destroyed by being sent to a black hole address. This kind of extreme deflationary move, combined with macro-level expectations of liquidity easing, could reignite market sentiment around liquidity narratives.

Just a reminder: the above is just an information summary, not investment advice. Market volatility can come at any time—do your own research and manage your positions carefully.

Do you think this is real liquidity easing or just a bluff? How will you adjust your positions?