The US inflation data has really delivered a big gift to the market this time.

The PCE data just released by the Department of Commerce shows that core inflation is stuck at 2.8% year-over-year, and the monthly rate is flat at 0.2%—softer than expected. Although this report was delayed due to the government shutdown, the numbers speak for themselves: inflation is indeed being suppressed.

What does this mean for the Fed? The final obstacle to rate cuts has basically been cleared. PCE is the indicator they watch most closely, and now with softer data, there’s almost no suspense about a move in December. The market has already been betting on this, and now it’s got solid confirmation.

Once the rate cut happens, the story changes. Cheap capital will once again be looking for an outlet, and high-risk assets will naturally become the hot pick. There’s no need to explain how sensitive the crypto market is to liquidity—when both institutional and retail money floods in, it’s going to be a lively scene. Bitcoin breaking previous highs, altcoins rallying in turn—these scenarios could all play out again.

But let’s stay calm: in a rate-cutting cycle, Bitcoin really does benefit on both fronts—it can tell the old anti-inflation story, and also take advantage of loose liquidity. The market will most likely start pricing in this expectation ahead of time, and the logic of asset repricing is already underway.

Of course, macro data is just one aspect. Implementation of policy still depends on the specific statements made at the Fed’s December meeting, and market sentiment can reverse at any time. But at least for now, the situation is favorable for the crypto market. Next, we’ll see how big a wave this round of liquidity can generate.