2025-12-29 03:22:06

The recent US stock market has been booming, with the S&P 500 index approaching the 7000 mark, rising for eight consecutive months. However, behind this rally, there are underlying currents in the crypto market.

From an asset allocation perspective, when traditional markets are highly valued, capital always seeks new opportunity windows. Next week's Federal Reserve meeting has become the market's focus—if expectations for rate cuts intensify, the US dollar will come under pressure, and international capital will flow where? History shows that whenever liquidity environments improve, crypto assets tend to attract increased attention.

Tech stocks have already risen for so long, with diminishing marginal returns, while the market caps of cryptocurrencies like Bitcoin and Ethereum are still relatively small compared to stocks, leaving more room to absorb incremental funds. This is not just speculation—on-chain data from institutional investors has long hinted at this.

Of course, there are risks involved. A policy shift by the Federal Reserve often brings market volatility. Retail participants need patience and vigilance: monitor Fed dynamics to judge the pace of rate cuts; observe the inflow and outflow of large funds; maintain necessary attention to mainstream cryptocurrencies like Bitcoin and Ethereum, while also respecting the high risks associated with smaller tokens.

Capital rotation is like a natural law—if you do your homework and understand market rhythms, opportunities will always exist. The key is to stay rational and not be driven by emotions.

BTC-0,44%

ETH-0,74%

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liquiditea_sipper

· 11h ago

Wait a minute, will the Federal Reserve really cut interest rates? Why do I feel like it's another wave of retail investors being harvested? It sounds nice, but in reality, it still depends on the Fed's mood. Tech stocks have surged so strongly, is it the turn of the crypto world? That said, I still feel a bit anxious. Institutions are accumulating coins, but what about retail investors? We're just the ones being harvested. Will this wave really take off, or is it just another false alarm? Let's wait and see. The Federal Reserve's meeting next week feels more nerve-wracking than Bitcoin's price movements. The concept of diminishing marginal returns should have been applied to tech stocks long ago; only now are we thinking about it in crypto? Betting on rate cuts is equivalent to betting on the dollar's devaluation. What's the point? It's still safer to hold mainstream coins. Rationality aside, watching others make money still makes me itchy.

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GweiWatcher

· 11h ago

The US stock market is hyping every day, but we still focus on the Fed's dog chain. If this rate cut really happens, Bitcoin will take off. Speaking of which, the tech stocks have risen so sharply that someone should have already started to escape. Capital always needs a place to go, and the crypto space is just too thirsty. On-chain data can't be fooled; institutions have been lurking for a while. Retail investors, don't be too inexperienced. When the rate cut expectations heat up, the dollar will bleed heavily. That's when things will get interesting. Honestly, I can't sleep when the Federal Reserve holds a meeting. How long do we have to keep an eye on it, everyone? I really don't dare to touch small coins. Last time, I got cut pretty badly. It's better to stick to mainstream ones. Capital rotation is like big fish eating small fish. It all depends on which side you're on.

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CascadingDipBuyer

· 11h ago

Once the Federal Reserve's news breaks, funds will have to find new places. Will it be our turn this time in crypto? --- Stocks have soared to the sky, it's our turn now haha --- Institutions have already been laying in wait on the chain, retail investors are still debating whether to jump in --- As the expectation of rate cuts heats up, the dollar depreciates, can the crypto prices outpace inflation? --- Bitcoin's market cap is so small, its ability to attract funds is incredible. It all depends on how the Federal Reserve moves --- "Don't be driven by emotions" is well said, but who can really do that? --- History repeats itself; every time liquidity improves, crypto takes off. This time is no different --- Doing thorough research is a prerequisite, but most people simply don't want to go through that trouble --- The marginal returns of tech stocks are decreasing, funds will always flow into new tracks. Is now the time? --- I'm really hesitant about small coins, only dare to play mainstream coins

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BearMarketMonk

· 11h ago

History never repeats, it just rhymes. This rotation is no exception; in the end, it's still those who have an information advantage who reap the rewards. --- How many times have we been fooled by the Federal Reserve's tricks? The story of rising expectations for rate cuts sounds quite melodious. --- Can you make money just by looking at on-chain data? Then why are so many people losing everything? --- Funds are like water, always flowing toward undervalued areas—problem is, who really knows where the valleys are. --- "Doing your homework" is just a cliché. The market never rewards the diligent, only the lucky. --- Here we go again, the usual "patience and vigilance." Actually, it's just gambling on the Fed's temper. --- Institutional entry does indicate something, but when retail investors see this data, the party is already over. --- Cycles are just cycles; no one can hit the mark exactly. Instead of trying hard to predict, it's better to think about how much you can afford to lose. --- The phrase "diminishing marginal returns" is said in every bull market, and every time it gets proven wrong.

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CommunitySlacker

· 11h ago

The Federal Reserve meeting is a key point. If interest rate cuts are implemented, there will really be money pouring into crypto. The historical patterns are right here. The S&P has already reached 7000; it's probably Bitcoin's turn now. Recently, on-chain data has indeed shown some movement. When expectations of rate cuts arise, the dollar is bound to depreciate. Who would still foolishly hold dollars at this time? Doing thorough research is correct, but retail investors can’t possibly understand the tactics of big funds. It’s all about being harvested. Institutions are quietly accumulating coins, while we’re still bragging in groups. The gap is huge. Honestly, it still depends on the Federal Reserve’s stance. It feels like relying on luck to survive.

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WalletsWatcher

· 12h ago

If the Federal Reserve actually cuts interest rates this time, we need to watch the dollar's reaction... But honestly, on-chain data is indeed telling a story. Whether BTC can continue to "suck blood" still depends on when the traditional markets can truly withstand it; right now, it's still uncertain. The theory of capital rotation sounds comfortable but is extremely difficult to implement; retail investors are just destined to be cut. Small-cap coins definitely deserve respect; I've seen many dreams of overnight riches end up zero. The key is to have psychological resilience—don't get caught in the cycle of being cut again and again like fdmn.

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