Recently, the financial market has experienced a significant turning point, as the Federal Reserve's interest rate hike cycle seems to be coming to an end. The market widely expects that interest rate cuts will begin in the first half of next year. This signal not only strengthens gold prices but may also bring new opportunities to the encryption currency market.

The latest dynamics from the London Metal Exchange show that several major financial institutions have raised their gold price forecasts. This move reflects the market's judgment that global liquidity is about to shift. As the strong dollar cycle may be coming to an end, investors' attention is refocusing on high-potential markets such as gold and encryption assets.

Historical data shows that gold and Bitcoin tend to exhibit a synchronous upward trend during periods of monetary policy shifts. For example, both experienced significant growth before the interest rate cuts in 2019 and during the large-scale monetary easing after the pandemic in 2020. The logic behind this phenomenon lies in the fact that when expectations of interest rate cuts coexist with inflationary pressures, Bitcoin's positioning as "digital gold" is more likely to gain market recognition.

It is noteworthy that while the gold market is generally seen as a signal of steady upward movement, the cryptocurrency market often exhibits greater price elasticity and faster market reactions. Therefore, at this stage, for investors with a higher risk tolerance, moderately allocating to mainstream cryptocurrencies such as Bitcoin (BTC) and Ethereum (ETH) may be a strategy worth considering.

However, investors still need to remain cautious, control their positions, and wait for the true liquidity turning point to appear. After all, the volatility of the encryption currency market remains high, and any changes in policy or market sentiment could lead to drastic price fluctuations.

Overall, as the global economic environment changes, investors need to closely monitor the Federal Reserve's policy trends and their impact on various asset classes. In this time of uncertainty, diversification and prudent decision-making will be key for investors to respond to market changes.