Latest market trends show that the Federal Reserve is about to implement interest rate cuts. According to futures market predictions, the likelihood of a 25 basis point rate cut by the Federal Reserve on September 17 is almost certain, with a probability close to 100%. Furthermore, there may be at least one additional rate cut before the end of the year.

This move is primarily due to the ongoing weakness in the labor market. Employment data for August showed poor performance, with new jobs nearly stagnating. Even more concerning is that employment data from the past year has been significantly revised downward, indicating that the actual state of the labor market is not as strong as previously thought. Analysts have pointed out that the Federal Reserve's data for four consecutive months has shown poor performance in the labor market, suggesting that this cooling trend is not coincidental, thus the Federal Reserve had to take action.

For the cryptocurrency market, this policy change may have significant implications. A rate cut typically means a depreciation of the dollar, leading investors to actively seek high-yield assets. As a hybrid of digital gold and risk assets, Bitcoin is likely to become a favored choice for investors once again. Historical experience shows that during periods of liquidity easing, Bitcoin often rises first.

However, market participants should not expect a violent surge. The recent 25 basis point rate cut is relatively moderate, and the market had already anticipated this. In the short term, there may be a "buy the rumor, sell the news" scenario, where a slight pullback occurs after the rate cut news is confirmed. However, in the medium to long term, if three rounds of rate cuts really occur by the end of the year, the liquidity of funds will increase, significantly raising the possibility of Bitcoin breaking through $100,000.

It is worth noting that in this market environment, some small-cap cryptocurrencies with compelling narratives may perform more actively. If a large amount of capital flows into the market, these coins may experience more drastic fluctuations than Bitcoin.

In general, the Federal Reserve's decision to cut interest rates may bring new opportunities to the cryptocurrency market, but investors still need to cautiously assess risks and make appropriate adjustments to their investment strategies.