Recently, Federal Reserve official Kashkari made noteworthy comments, indicating that there might be two rate cuts in 2025 and deeming it "appropriate." He also hinted that the first rate cut could start in September. Following this news, the financial markets reacted immediately. Bitcoin rose 3.2% within 24 hours, breaking the $118,000 mark, and Ethereum also surpassed $4,600.

The two rate cuts are expected to release 50 basis points of liquidity, equivalent to injecting more than $200 billion into the market. Such a scale of monetary policy adjustment may have far-reaching effects on various assets. Notably, Kashkari emphasized that the Federal Reserve's policy focus is shifting towards protecting employment, no longer overly fixated on the 2% inflation target. As long as the job market remains stable, the rate cut channel may continue to remain open.

The cryptocurrency market, as a sensitive indicator of liquidity, has already responded to this policy shift with anticipated reactions. Multiple listed companies have increased their holdings of Bit, with total holdings exceeding $30 billion. At the same time, cryptocurrency funds have also seen significant net inflows.

However, investors still need to remain cautious. Tariff policies may delay the decline of inflation, thereby affecting the process of interest rate cuts. From a technical perspective, Bitcoin currently has strong support around $113,000, and the weekly MACD indicator has formed a golden cross, which may indicate further upside potential.

The Federal Reserve's policy adjustments not only affect the cryptocurrency market, but will also have a profound impact on the entire financial system. This could create opportunities for the revaluation of various asset classes. Some traditional financial giants have begun to consider using Bit to hedge against the risk of dollar depreciation, while blockchain technology is accelerating its penetration into various industry sectors.

Although Kashkari stated that he would not preset a specific easing path, the Federal Reserve still has considerable policy space. The current market environment may provide a good entry opportunity for long-term investors. As more institutional investors begin to pay attention to cryptocurrencies, the development prospects of this emerging market are promising.