Recently, there’s been a heart-pounding rumor circulating in the market—the Federal Reserve might take action this week.

On December 8, a crypto analyst shared the view that this round of rate cuts, combined with a return to balance sheet expansion, could give the liquidity-strapped market some breathing room. Not just this week—even the entire month of December could see a long-awaited broad-based rally. U.S. stocks, cryptocurrencies, and precious metals all have a chance to move upward.

This isn’t just idle speculation. As early as November 11, some people had already hinted that the Fed would most likely hit the brakes and stop quantitative tightening in December, or even directly switch gears to resume balance sheet expansion. Once liquidity gets back on track, the scene could look a lot like October 2019. As for a real “liquidity flood”? That might have to wait until May next year, after Trump takes over the Fed—at which point we could see a repeat of the wild scenario from March 2020.

For investors, this is definitely exciting news. After all, when liquidity is tight, all kinds of assets get squeezed, and market confidence takes a hit. But as soon as the money tap is turned on, cash flows like a flood finding an outlet, rushing into every corner and driving prices higher.

That said, the market never follows the script exactly. No matter how impressive the analysts’ arguments, the Fed’s actual decisions are always subject to a host of variables. If you want to catch the broad market rally, you need to stay clear-headed—keep a close eye on policy shifts and market movements, and don’t get so focused on the gains that you forget the risks. In financial markets, opportunities and pitfalls always come hand in hand.