The signals of liquidity tightening are already very clear.

Recent statements by Federal Reserve officials, including Moussadegh, highlight three key points: the economy may remain strong next year, the pace of rate cuts needs to be more cautious; the current interest rate levels have limited impact on curbing inflation, and continued rate cuts could lead to overly loose monetary policy; even Powell has stated that whether to cut rates in December is still undecided, with other officials adopting a more conservative stance.

This directly changes market expectations of "continued easing." The cost of the US dollar rises, making it more difficult for funds to flow into risk assets.

Why is the crypto market reacting this way? Even with positive news, prices remain under pressure. The core reason lies in the shift in liquidity expectations. Once the Fed's policy stance tightens, institutional funds will reassess their allocation strategies, and highly leveraged traders will adjust their positions in advance. Last night's market volatility essentially reflects the re-pricing of funds before a change in policy direction.

Looking back at this year's market, a pattern emerges: the rebound in cryptocurrencies largely depends on expectations of rate cuts. Any slight adjustment in the Fed's policy stance can reshape the entire narrative framework.

A shift in monetary policy often opens new allocation windows. When central banks replace actual actions with "expectation management," experienced investors begin to reposition. Market sentiment fluctuations and real value ranges often become misaligned during such times.