The market sentiment has changed dramatically. The probability of the Fed lowering interest rates in January has fallen from optimistic expectations to 22%, shattering the "rate cut dream" overnight. Currently, all traders are on edge—waiting for remarks from Fed Chairman Powell. His upcoming words are likely to become a key signal that ignites market expectations.

Why did it take a sharp turn? There are two core driving factors behind it.

One issue is that the inflation problem has not been truly resolved. Fed Vice Chairman Williams recently issued a warning that the current inflation data may be underestimated, and the actual situation is more severe than the numbers indicate. This means that the duration of high interest rate policies will be extended, and the market's previous expectations for rapid interest rate cuts have basically fallen through.

The second is the covert game between politics and the independence of the central bank. The White House's expectations for economic growth create tension with the Fed's steady stance. The market is like a spring that is stretched to its limit; any unexpected economic data or a hawkish policy statement could trigger significant volatility.

How to respond at this moment? The most practical advice is: don't stubbornly bet on the direction, maintain a flexible position structure. At the moment when market expectations are pushed to their lowest point, ensure you have enough cash reserves and a calm judgment. Historical experience tells us that when market sentiment is suppressed to the extreme, the energy for a rebound accumulates more fully. Once sentiment reverses, the strength of that wave of catch-up rally often exceeds everyone’s imagination.

There is a rule in the financial market: the more expectations are suppressed, the greater the rebound potential. Smart traders never blindly follow the crowd in times of panic, but take the opportunity to organize their strategies and positions.

The trends of mainstream cryptocurrencies like ETH, SOL, and DOGE are now waiting for this signal. The market rhythm in the coming days will largely depend on the Fed's voice.