Gold prices recently hit a new all-time high, and the liquidity changes reflected behind this may be redefining the asset allocation landscape.

From market phenomena, global hot money is accelerating its exit from traditional paper assets. U.S. Treasury yields are under pressure, stock market volatility is increasing, and at the same time, physical assets continue to attract capital—gold and silver have already signaled this. This asset rotation logic also applies to the crypto market: when risk aversion rises and the dollar depreciates, scarce digital assets often become the next target for smart money.

The rising expectation of Fed rate cuts is a key variable. An easy liquidity environment typically stimulates demand for risk assets. Historical data shows that during each rate-cut cycle, core assets like Bitcoin and Ethereum have experienced significant price recoveries. The reason is straightforward: when liquidity is abundant, funds seeking high returns naturally flow into higher-risk but potentially more profitable areas.

Unlike gold, the appeal of crypto assets lies in their potential as emerging financial infrastructure. Against the backdrop of dollar depreciation and ongoing global central bank easing, these assets are shifting from speculative targets to allocation assets. Market participants need to consider where funds might flow next when traditional hard assets are already high and liquidity continues to be released.

From a cyclical perspective, the crypto market is in a stage where policies are warming up and fundamentals need validation. Whether institutional investors or individuals, the depth of market understanding will directly impact the returns.