Recent public statements by Federal Reserve officials reveal a clear divergence, with one side advocating for over 100 basis points of rate cuts this year to stabilize the economy, while the other believes current interest rates are already appropriate and should remain on hold. Such high-level policy disagreements are quite rare and have directly impacted market expectations.

As a result, traditional financial markets are experiencing a tug-of-war between bulls and bears. The three major US stock indices show signs of divergence, with investors wavering between expectations of easing and inflation concerns. Meanwhile, gold and silver, as safe-haven assets, are in high demand, with the market clearly betting on further easing of global liquidity.

From the perspective of the crypto market, this signal is worth paying attention to. When traditional financial markets are embroiled in policy disputes and volatility increases, the market often seeks a new asset allocation direction with clearer consensus. Historical experience shows that whenever liquidity expectations heat up, funds tend to flow into crypto assets. While stocks, bonds, and precious metals struggle amid turbulence, Bitcoin and Ethereum are precisely in the phase of brewing independent trends.

This time is no different. Rather than getting caught up in the reasons behind the Fed’s two factions, it’s better to closely monitor the actual flow of funds. When bullish and bearish forces intensify and traditional assets lack clear direction, Bitcoin, Ethereum, and other mainstream cryptocurrencies may be becoming the targets for institutional and large investors to reallocate.

In the short term, the ultimate outcome of this "internal conflict" within the Fed could determine where liquidity will flow next. The key is to seize the most consensus-driven and attractive assets.