The latest Federal Reserve meeting minutes can be summarized as a core judgment: recent pressure, but a positive outlook in the medium to long term. Specifically:

**First is the short-term adjustment pressure.** The Fed's indication that there is less room for rate cuts in 2026 than the market expected has undoubtedly dealt a blow to risk assets. Expectations for higher funding costs have directly lowered the valuations of mainstream cryptocurrencies like Bitcoin and Ethereum. Due to heavily leveraged investors being forced to liquidate positions, the market has fallen into a short-term liquidity crunch. Coupled with seasonal liquidity tightening at the end of the year, funding pressures persist, leading to increased declines.

**However, from a medium to long-term perspective, the logic remains unchanged.** Although the Fed has reduced the magnitude of future rate cuts, the trend of balance sheet expansion has not reversed—indirect liquidity injections are still ongoing. The trend of relative depreciation of the US dollar continues, meaning that dollar-denominated assets held by institutions will inevitably seek new allocation directions. The emergence of compliant channels such as Bitcoin ETFs has significantly lowered the barriers for institutional funds to enter the crypto market. Capital inflows are only a matter of time.

**The improvement of regulatory frameworks is actually a positive signal.** The Fed's restrictions on stablecoins have been further tightened, requiring issuers to maintain sufficient reserves. This will accelerate the clearing out of non-compliant platforms, while leading institutions, with stronger risk control capabilities and capital strength, can expand their market share in a more regulated environment. A standardized market ecosystem significantly enhances institutional participation willingness.