Recently, the cryptocurrency market has once again stirred up waves. On December 18th, White House economic advisor Hassett's remarks drew attention—he straightforwardly stated that November's CPI data performed excellently, and wage growth finally surpassed inflation. This was followed by a series of policy expectations: next year's tax cuts, downward pressure on mortgage rates, and greater room for the Federal Reserve to cut interest rates. What does this combination of signals mean for the crypto market?

Many retail investors think this is a game played on Wall Street, far from themselves. But in reality, understanding Hassett's identity is crucial—he is a potential successor to Fed Chair Powell. Someone with such a special status releasing this kind of signal, promising to enhance the transparency and predictability of Fed policies, carries deep implications that should not be underestimated. Simply put, policy communication will become clearer, and uncertainty in capital markets will decrease, which usually indicates that capital will become more active.

Here is a basic logic to understand: once the expectation of dollar depreciation forms, liquidity will seek an exit. In the current environment where traditional assets have limited yields, high-risk, high-reward crypto assets have become an important destination for funds. Especially those mainstream coins with large market caps and sufficient liquidity are most likely to absorb this wave of capital inflow. The so-called "loose liquidity cycle" essentially reflects a process of central bank policy shifts and capital reallocation.

But one point needs to be reminded of: positive policy signals do not justify blindly going all-in. Historically, before every easing cycle, there has always been a group of players chasing high and getting caught. The key to precise positioning lies in understanding the rhythm—not rushing blindly, but selecting top-tier assets and reasonable positions within the window when liquidity expectations are established. A long-term bullish cycle does not mean every trade will be profitable; risk management always comes first.