The Federal Reserve has acted again today—its third move this year, directly cutting 25 basis points, bringing the federal funds rate to 3.5%.

Many people only see the US stock market soaring, but the impact of this on the crypto market might be much stronger than on traditional assets.

The logic is simple: as the US dollar interest rate drops, money has to find a way out. In the past, depositing in banks could earn 5% interest, but now at 3.5%, savvy investors have long started shifting to higher-yield assets. And in the crypto space, the yield flexibility is well understood.

The key is not just one rate cut, but three consecutive cuts. What does this mean? The Federal Reserve's script has shifted from "fighting inflation to the death" to "saving the economy." Once the faucet is turned on, it's hard to turn it off in the short term.

What might happen next? I see two possible paths:

First, BTC will definitely lead the charge. The first stop for large funds entering the market will surely be Bitcoin (the most liquid asset), with no major issue in holding above $40,000. After stabilizing, mainstream coins like ETH and SOL will follow suit—this pattern was validated during the 2020 rate cut cycle.

Second, derivatives will become very active. With interest rates falling, the cost of leverage decreases, and the contract market is likely to explode. But this is a double-edged sword—liquidations and surges will happen simultaneously. Therefore, position management and stop-losses are more important than ever.

Finally, a practical note: this market trend is now clear, but most people will only profit and then run away. Those who can truly benefit from policy dividends are still those who hold core assets.

Now, you can open your trading platform and check the BTC chart. This opportunity depends on how you seize it.