After reading the latest statements from the Federal Reserve Chair, the entire market seems to be gearing up. As someone who has been in the crypto space for many years, I am particularly sensitive to these macro signals—because they often determine the market trend in the coming months.

To put it simply, the Fed is about to start printing money. And not just symbolically, but actually pouring real cash into the market. What does this mean for us? It means a large amount of capital will be looking for high-yield opportunities everywhere. The crypto space, with its high risk and high reward profile, naturally becomes the top target for these funds.

What exactly did he say? I’ve distilled three key points.

First, there is a high probability of a 25 basis point rate cut this month. This would be the third rate cut this year, totaling a 0.75% reduction. What does this indicate? It shows that the Fed has abandoned the approach of treating inflation as an enemy; their policy is clearly shifting.

Second, the balance sheet reduction program is about to come to an end. The Fed launched a reserve management plan in December. Although officials insist this is not quantitative easing, anyone familiar with the market knows this is the start of liquidity release. The signal is very clear.

Third, inflation is no longer the top priority. The tone of the speech was noticeably dovish, with a focus on employment issues. This means future policy space has been opened up—tightening can be eased or loosened as needed, very flexible.

Why is this a good signal for the crypto space? The logic is actually quite simple. Imagine the market’s liquid funds as a fixed pool; suddenly, someone turns on the tap and starts pouring water in. As the water level in the pool rises, it naturally splashes out to the surroundings. Crypto assets are the easiest place for this water to flow—because the returns are more attractive and opportunities are more abundant.