$ETH This week’s Fed meeting: Is a rate cut just the appetizer?

Everyone’s watching for a rate cut, but the real big move might be something else—will the Fed announce a restart of its Treasury purchase program? To put it simply, it’s not just about lowering borrowing costs, but about directly injecting money into the market. If the Fed expands its balance sheet, the liquidity unleashed is much more powerful than a rate cut.

What does this mean for the crypto market? Liquidity is the fuel for risk assets. If the Fed really starts buying tens of billions of dollars in Treasuries each month, where will that money flow? History tells us that stocks and cryptocurrencies—those high-risk areas—are usually the main beneficiaries of excess liquidity. When money loosens up, the momentum for rallies returns.

But don’t get too excited just yet—there are a few details to watch:

**Expectations may already be priced in.** The market’s recent strength has largely been a front-running of this expectation. If the bullish news actually materializes, it could ironically trigger a “buy the rumor, sell the news” scenario.

**The devil is in the details.** Is it $15 billion or $45 billion per month? When will purchases start? These are the key questions. The scale matters—a weak announcement could disappoint bulls and trigger a reversal.

A few suggestions for you:

**Don’t get carried away before the news lands.** When everyone’s shouting “liquidity is coming,” it’s often the riskiest moment. Short-term pullbacks are likely—don’t be the one buying at the top.

**Watch the real reaction after the decision.** After the news drops, do US stocks and Bitcoin keep rallying or do they spike and fade? This is more important than what the Fed actually says. Money talks.

**Enter in batches, don’t go all-in.** Early in a policy shift, markets are bound to be volatile. Going all-in is too risky; scaling in lets you handle the swings and keep some ammo in reserve.

Bottom line, moving from tightening to easing liquidity is a fundamental macro shift. Long-term, this is a major positive for risk assets. But in the short term, stay calm and don’t let emotions dictate your moves.

Opportunities are waving, but whether you can seize them depends on patience and discipline.