Latest news! Goldman Sachs has just released a forecast: the probability of a Fed rate cut in December is extremely high, with market pricing indicating that this possibility has reached 85%.

Why the sudden rate cut? The answer is straightforward - economic data is sending a warning. There are clear signals of a weak labor market, and while inflationary pressures have eased, they remain in a contested range. If the Fed continues to maintain high interest rates, market liquidity may face greater pressure. This is not a market rescue, but a standard operation in the policy toolbox.

Looking back at historical data: After the Fed's interest rate cut cycle started in 2019, BTC rose from $7000 all the way to $14000, doubling in value. Each time liquidity is eased, crypto assets are often the first to react as a risk appetite asset.

What will happen this time? Once the US dollar weakens, global funds will seek new allocation directions. The narrative of Bitcoin as "digital gold" may be activated again, while those small coins with weak fundamentals? They may surge during the frenzy, but could also go to zero when the tide recedes.

What should retail investors do? Three principles:

First, position control is the survival rule. Don't fire all your bullets at once; the market will always give you opportunities to add to your position.

Secondly, focus on core assets. BTC and ETH are the stabilizing anchors in the portfolio, while altcoins have too much volatility and are not suitable for heavy investment.

Third, don't be a slave to the news. The market will price in expectations in advance, and if you chase the highs after the official announcement of interest rate cuts, you will most likely find yourself at the top of the mountain.

Cycles are often conceived in panic, erupted in hesitation, and ended in frenzy. At this point, how much do you understand?