Recently, discussions about the Fed possibly lowering interest rates have sparked widespread follow in the market. Let's delve into the importance of this topic and its potential impacts.

It is expected that on September 18, the Fed is likely to implement a 25 basis point rate cut, and may further cut rates by 25 basis points in October and December 2025. However, it is worth noting that market reactions are not simply in sync with the day of the rate cut, but often respond in advance to expectations of the rate cut.

Observing the recent gains of Ethereum and Bitcoin, we can infer that the market has largely priced in the expectation of a 25 basis point rate cut. From this perspective, the market may face downward pressure in the short term.

In fact, the more crucial aspect is the dot plot released by the Fed on that day. This chart reflects the attitudes of Fed members towards the future pace of interest rate cuts, which will directly influence market participants' choices after the announcement, whether to take profits or to continue chasing expectations for more accommodative policies.

If the rate cut meets expectations of 25 basis points, the market may experience a brief rise followed by a decline. Only in the case of a surprise cut of 50 basis points could a short-term rapid increase be triggered.

At the same time, the dot plot and the speech of Fed Chair Powell will reveal whether there is still room for further easing in the future. If not, we may see institutional investors and large holders choosing to take profits, leading to a price decline.

Overall, investors should closely follow the Fed's decisions and related signals, as these factors will largely influence the short-term trends of the cryptocurrency market.