Regarding whether the Federal Reserve will cut interest rates in 2026 and when, the market has long been tired of discussing it. However, Bank of America Chief Strategist Michael Hartnett has raised a more realistic question: a liquidity crisis could be imminent, and the Fed might be forced to loosen monetary policy at that time.

Assuming a rate cut cycle actually occurs, historical data suggests that these three asset classes will benefit first:

**Long-term zero-coupon bonds** — as interest rates decline, bonds become more attractive
**Mid-cap stocks** — most sensitive to financing costs and highly elastic in performance
**Bitcoin** — the most responsive barometer to changes in global liquidity

What does this mean for the crypto space? Once rate cut expectations are confirmed, the crypto market may rebound faster than other risk assets. But this doesn’t mean we should start frantically speculating again. After this round of liquidity tightening and reshuffling, money will become smarter — flowing into projects with solid fundamentals, clear cash flows, and well-defined compliance paths.

Instead of guessing when the rate cuts will come, ask yourself: Are the assets I currently hold the kind that, when liquidity rebounds, will truly attract capital attention? That’s the key.