BTC fluctuated repeatedly between 85,000 and 90,000 USD, and the market seems to be waiting for something. Looking closely at the recent series of actions by the Federal Reserve, the logic is quite clear — they have completely reversed their previous tightening policy.

How exactly has it changed? Two major moves: first, starting in December, they will stop shrinking the balance sheet, which means the funds previously withdrawn from the market are now paused, indirectly releasing liquidity; second, they have cut interest rates again, lowering by 25 basis points in December, with a total of three rate cuts amounting to 75 basis points. This indeed eases the pressure on ordinary borrowers, for example, a $300,000 mortgage could save dozens of dollars in monthly payments.

But what does this mean for the crypto market? That’s the key. The Fed’s combination of easing and rate cuts has historically triggered a surge of capital into risk assets. Cryptocurrencies, being highly sensitive to liquidity, tend to react first. As a key stablecoin in the crypto ecosystem, USDD’s ecosystem development and market demand will grow accordingly, potentially expanding circulation, which helps maintain price stability.

Another perspective is the anchoring mechanism. USDD maintains its peg to the dollar through crypto asset reserves. The Fed’s rate cuts directly lower U.S. Treasury yields, and the yields on U.S. Treasuries held by major stablecoins like USDT and USDC have significantly declined. They will eventually need to adjust their asset allocation strategies. During this process, the competitive landscape among different stablecoins may change.