This morning, the cryptocurrency market experienced a significant rise, with Ethereum ( ETH ) breaking through $4500, and Bitcoin ( BTC ) climbing to $115,000, while other small-cap coins followed suit. Behind this wave of market activity, the Federal Reserve's upcoming meeting on July 15-16 has become the focus. Due to the latest CPI data falling short of expectations, the market generally believes that the likelihood of the Federal Reserve cutting interest rates has increased significantly.

However, in this seemingly favorable market environment, investors still need to remain vigilant. The market trend may exhibit two scenarios: firstly, mainstream currencies may continue to rise, with Bitcoin breaking through $130,000 and Ethereum exceeding $5,500, triggering investors' fear of missing out (FOMO) psychology, leading to a massive influx of capital followed by a sudden market crash; secondly, Ethereum may start to decline directly after reaching $4,800.

It is worth noting that the likelihood of the first scenario is higher. With the implementation of the Federal Reserve's interest rate cut policy, a large amount of capital may flow into the encryption market, driving prices further up. However, regardless of the scenario, investors should act cautiously, analyze market trends rationally, and avoid blindly chasing highs or panic selling.

In this uncertain market environment, it is crucial to remain calm and rational. Investors should focus on fundamentals, assessing the long-term value of projects, rather than being swayed by short-term price fluctuations. At the same time, it is important to keep an eye on changes in the global macroeconomic situation and regulatory policies, as these factors can significantly impact the encryption market.