9.15 AI Daily The Fed's rate cut expectations rise as the global economy faces multiple challenges

1. Headline

1. The Federal Reserve's interest rate cut “is a done deal”, with many uncertainties surrounding the policy path.

The Federal Reserve will implement its first interest rate cut of the year this week. With a series of employment and inflation data being released, the market has fully priced in the Fed's decision to restart rate cuts this week. The current focus of the market has shifted to the magnitude and pace of the rate cuts.

Analysts generally believe that the Federal Reserve's interest rate cut of 25 basis points this week is a high probability event, but the possibility of a 50 basis point cut cannot be ruled out. Against the backdrop of continued “suspense” in the Federal Reserve's monetary policy pace, the performance of global major asset classes will also vary depending on specific circumstances.

The realization of interest rate cut expectations will alleviate downward economic pressure and provide a breathing opportunity for risk assets. However, if the Federal Reserve reveals an overly dovish policy orientation in its statement, it may trigger a rebound in inflation expectations, exacerbating volatility in financial markets. Therefore, the tone and guidance of Powell's speech this time will become a focal point of high market attention.

2. Ethereum spot ETF recorded a weekly inflow of $638 million, with Fidelity leading.

The Ethereum spot ETF recorded strong investor demand last week. The ETFs from Fidelity and BlackRock saw inflows exceeding $579 million on September 12, becoming leaders in market participation.

This inflow has turned the weekly net flow positive, reflecting a renewed demand for ETFs as Bitcoin prices steadily consolidate above $114,000. Institutional investors are confident in the long-term prospects of Ethereum.

Ethereum, as a leading smart contract platform, plays a key role in emerging fields such as decentralized finance ( DeFi ) and Web3. With the continuous expansion of the ecosystem and the richness of application scenarios, the long-term value of Ethereum is expected to continue to stand out.

At the same time, gold ETFs continue to lead in performance, reflecting investors' preference for safe-haven assets. Against the backdrop of high inflation and ongoing geopolitical risks, gold ETFs are expected to continue attracting fund inflows.

3. Dogecoin is surging, analysts are optimistic about a peak after the ETF launch.

The highly watched Dogecoin ( DOGE ) recorded a strong increase of nearly 34% last week, with the trading price surpassing $0.28. Technical charts show a formation pattern that hints at an upward trend, and upcoming ecosystem developments may boost trading activity.

The article analyzes the reasons behind this round of rising prices from two dimensions: technical and on-chain analysis, revealing bullish signals such as the breakout of a symmetrical triangle on the weekly chart, a surge in trading volume, and indicators like the MVRV Z-Score. These factors collectively suggest that DOGE is likely to move towards higher price targets in anticipation of the ETF launch.

Analysts point out that DOGE, as a “community-driven” cryptocurrency, is often influenced by speculative sentiment. However, with the continuous development of the ecosystem, DOGE is expected to gain more practical application scenarios, thereby enhancing its long-term value.

Meanwhile, there is a divergence in the community regarding whether a price surge or a deeper correction will occur. Investors need to maintain risk awareness and rationally view the development prospects of DOGE.

4. Yala has been attacked, has located the stolen assets, and is cooperating with law enforcement to recover them.

The stablecoin project Yala recently suffered an attack, resulting in unauthorized fund transfers. The Yala team released an update on platform X stating that they have regained control and have located the relevant stolen assets on-chain, and are actively cooperating with law enforcement to recover them.

Yala stated that it will take three measures: first, to fully replenish all affected funds pools, ensuring that users can exchange YU tokens for USDC at a 1:1 ratio; second, to maintain transparency of information, publishing a roadmap for liquidity recovery and security enhancement within 48 hours; third, to continuously optimize the system security mechanisms.

According to data, the YU stablecoin is currently reported at $0.11 and has not yet restored its peg. This incident has once again raised the industry's high attention to security audits and risk control.

Stablecoins, as the “shell” of the crypto market, have their security directly affecting the healthy development of the entire ecosystem. Analysts point out that stablecoin projects need to strengthen security measures, enhance transparency, and rebuild market confidence. At the same time, regulatory agencies should accelerate the formulation of relevant regulations to create a favorable environment for industry development.

5. Crypto KOL: OpenSea is suspected to launch AI products

On September 15, according to cryptocurrency KOL @Caneleo55, OpenSea launched a webpage containing the “AI” text on its official subdomain, with screenshots showing that the page is the waiting list interface for the OpenSea AI product.

OpenSea has not responded to this and has currently removed the subdomain. However, this action has drawn market attention, as it involves OpenSea's layout in the AI field.

As a leading platform in the NFT space, OpenSea is expected to enhance user experience and optimize content creation and discovery mechanisms with the help of AI technology. AI has broad application prospects in areas such as image generation and content review.

At the same time, AI may also bring new challenges to OpenSea. Once AI-generated content becomes rampant, it could affect the scarcity and uniqueness of NFTs. OpenSea needs to formulate corresponding policies to balance AI innovation with the intrinsic value of NFTs.

Regardless, the addition of AI will bring new vitality to the NFT market. Whether OpenSea can seize the AI opportunity will be a key factor in maintaining its leading position.

2. Industry News

1. The Federal Reserve is about to cut interest rates, and the crypto market is showing mixed performance.

Bitcoin rose slightly by 0.2% to $116,125 on the day before the Federal Reserve's interest rate decision this Wednesday. Nevertheless, major cryptocurrencies showed signs of retreating from their highs in the early morning today. Ethereum briefly fell below $4,600, and Solana dropped below $240 at one point.

Analysts believe that the market's expectation for a 25 basis point rate cut by the Federal Reserve this week has been largely priced in, with the key being Powell's speech tone and guidance on policy outlook. If a dovish signal is conveyed, the market is likely to continue rising; however, if the signal is tight, it may trigger a pullback.

In addition, the performance of altcoins has varied. Tokens like Pump and Hype have surged due to capital speculation, but they also face the risk of profit-taking at high levels. Overall, investor sentiment is cautiously optimistic, and the market will closely watch the results of the Federal Reserve meeting.

2. Institutional buying supports the market, and Bitcoin ETF records five consecutive days of large net inflows.

Data shows that after the fluctuations caused by last week's CPI data, institutional funds have returned to the cryptocurrency market. Bitcoin spot ETFs have recorded significant net inflows for five consecutive days, with Fidelity and BlackRock products attracting the most capital. Ethereum also experienced its largest single-day net inflow in two weeks last Friday.

Analysts indicate that this trend reflects institutions' optimistic sentiment towards the long-term prospects of cryptocurrencies. Despite persistent inflation and a slowdown in employment complicating the Federal Reserve's policy outlook, the continued influx of funds is expected to provide support for the market.

At the same time, although the ETF applications for XRP and SOL were delayed, their prices have risen, which the market interprets as a delay rather than a rejection. The CMC Altcoin Season Index has also risen to 72, and the total market capitalization has reached a 90-day high, indicating that investor expectations for the altcoin season are heating up.

3. The Solana ecosystem continues to make strides, with TVL exceeding $13 billion.

The total locked value of the Solana ecosystem has recently surpassed $13 billion, setting a new historical high at ( TVL ). This is mainly driven by the increase in DeFi sector TVL, large institutional purchases, and favorable macroeconomic conditions.

On the technical side, the price of Solana has increased by over 21% in the past two weeks and is currently hovering around $245. Technical indicators show strong upward momentum, suggesting that SOL is expected to move towards the $260 to $270 range.

Analysts believe that the continuous development and innovation of the Solana ecosystem are key to maintaining its leading position. With more projects and capital flowing in, Solana is expected to maintain strong performance in the foreseeable future. However, it is also necessary to be vigilant about potential regulatory risks and the competition from rivals.

4. Is the Shiba Inu coin's rise hiding concerns? Large investors fleeing triggers selling pressure.

The price of Shiba Inu (SHIB) has risen nearly 25% in the past week, primarily driven by expectations surrounding the DOGE ETF and a surge in trading volume. However, on-chain data shows that some large holder addresses are offloading significant amounts, raising concerns about selling pressure in the market.

Analysts point out that although SHIB has formed a bullish pattern on the weekly chart, the exit of large holders may suppress future performance. If SHIB cannot stabilize at the key resistance level of $0.000012, it may face further retracement risks.

Meanwhile, the Shiba Inu coin development team urgently froze some network functions and locked the tokens used by the hacker to prevent further attacks. This incident also affected investor confidence to some extent.

5. The unlocking tide is approaching next week, and multiple altcoins are facing supply pressure.

According to statistics, the cryptocurrency market will experience a token unlock wave with a total value of over $790 million in the coming week. This includes popular altcoin projects such as Optimism, Frax Token, and Arrum.

Analysts point out that the influx of a large amount of fresh supply may put pressure on the prices of these tokens. Investors need to closely monitor the unlocking time and scale, and assess whether the project's fundamentals are sufficient to absorb the new supply.

At the same time, there will be more than 1 million USD in linear unlocks happening daily, which may further exacerbate market volatility. Investors should carefully consider the potential supply pressure risks when making investment decisions.

3. Project News

1. Sui Network: The Move ecosystem's new star continues to lead innovation.

Sui Network is an emerging public chain project based on the Move language, founded by the core team that was involved in the Diem( development from former Facebook cryptocurrency). Recently, the Sui ecosystem has been continuously innovating, leading the innovative development of the Move system.

Latest Updates: Sui Network released the SuiPlay gaming platform this month, setting up the largest booth at the KBW conference in South Korea to showcase its ecological strength. At the same time, Grayscale Trust and the Native USDC stablecoin on Sui have been launched one after another, injecting new momentum into the ecosystem. In addition, the Sui incubation program has incubated popular projects like Cetus, and more innovative applications will be launched in the future.

Market Impact: As a representative project of the Move system, Sui's innovative development will drive the progress of the entire Move ecosystem and bring positive demonstration effects to other Move public chains such as Aptos and Movement. The prosperity of the Sui ecosystem will also attract more developers and funds into the Move track, promoting the widespread application of the Move language in the Web3 field.

Industry Feedback: According to analysis by Delphi Digital, the Sui ecosystem's TVL has exceeded 200 million USD, and the price of the token SUI has surged this month, reflecting market optimism about Sui's prospects. However, some analysts point out that there are currently few tradable assets in Sui, and more star projects need to be incubated to maintain ecological vitality.

2. Hyperliquid: A new star in the DeFi track of decentralized exchanges

Hyperliquid is a new type of decentralized exchange that adopts a hybrid model of AMM and primary market making, aiming to provide efficient liquidity and a low slippage trading experience. Recently, Hyperliquid's ecosystem dynamics have been frequently reported, becoming a new star in the DeFi space.

Latest Update: Hyperliquid has launched a new stablecoin USDH, won the bid and operated by Native Markets. USDH will serve as the quote asset for Hyperliquid trading pairs and is expected to enhance platform liquidity. In addition, the price of the Hyperliquid token HYPE continues to rise, with a significant increase in trading volume, reflecting the market's optimism about the platform's prospects.

Market Impact: As a new type of DeFi exchange, Hyperliquid's innovative model is expected to bring new development directions for DeFi exchanges and enhance user experience. If USDH operates smoothly, it will provide a replicable stablecoin operation template for others. The prosperity of the Hyperliquid ecosystem will also influence the flow of funds in the DeFi space.

Industry feedback: According to analysis by Delphi Digital, the TVL of the Hyperliquid ecosystem has exceeded $150 million, and the price of HYPE tokens has surged nearly 50% this month, reflecting the market's optimistic expectations for the platform's prospects. However, some analysts have pointed out that Hyperliquid needs to further expand its ecosystem scale and attract more high-quality projects to truly lead innovation.

3. Pi Network: The pioneer of mobile mining moves towards mainnet launch

Pi Network is a mobile device-based cryptocurrency project that issues Pi coins through mobile mining, and is regarded as a pioneer in mobile mining. Recently, Pi Network has been making progress towards its goal of launching its mainnet, attracting market attention.

Latest Update: Pi Network has launched the protocol version 23 upgrade this month, enhancing network scalability and stability in preparation for the upcoming open mainnet (Open Mainnet). At the same time, Pi Network is also enhancing its global influence by sponsoring international conferences and expanding ecological applications.

Market Impact: As a pioneer in mobile mining, the launch of the Pi Network mainnet will set a benchmark for mobile devices participating in the cryptocurrency ecosystem. If Pi coin can gain widespread recognition, it will promote the emergence of more mobile mining projects, providing new channels for the public to participate in Web3.

Industry feedback: According to Messari analysis, Pi Network currently has over 35 million users, and after the mainnet launch, the supply of Pi coins will reach billions, with certain deflationary expectations. However, some analysts have expressed doubts about the practicality and value storage capability of Pi coins, believing that the project still needs to further improve its economic model.

4. Tether launches USAT stablecoin to strengthen compliance in the US market.

Tether is currently the largest stablecoin issuer, with its USDT stablecoin accounting for nearly half of the global cryptocurrency trading volume. Recently, Tether announced the launch of the USAT stablecoin, designed specifically for the US market, to enhance compliance.

Latest update: USAT stablecoin is issued in collaboration between Tether and American banks, and will fully comply with U.S. regulatory requirements, including anti-money laundering and know your customer policies. USAT will run in parallel with USDT, providing compliant cryptocurrency payment and settlement tools for U.S. users.

Market Impact: The launch of USAT will help Tether expand its influence in the U.S. market and set a benchmark for compliance operations for other stablecoin issuers. If USAT gains widespread recognition, it will promote the adoption of cryptocurrency payment and settlement applications in the United States.

Industry feedback: According to Kaiko's analysis, USDT currently accounts for over 40% of the market share on cryptocurrency exchanges in the United States, and the launch of USAT will further solidify Tether's dominance in the US market. However, some analysts believe that USAT needs the support of mainstream financial institutions to truly establish itself in the US market.

5. Vitalik Buterin warns: AI governance poses significant risks

Ethereum co-founder Vitalik Buterin recently issued a warning about the risks of AI governance, sparking heated discussions in the industry. He pointed out that if crypto projects adopt AI governance, they could be exploited by malicious actors, leading to significant financial losses.

Latest news: Vitalik stated on social media that if crypto projects use AI to allocate funding, people might implant “jailbreak commands” to request that the AI pay all funds to them. This risk arises from the uncertainty and manipulability of AI systems.

Market impact: As the founder of Ethereum, Vitalik's views have significant influence over the entire cryptocurrency space. His warnings may deter some projects from adopting AI governance, thereby slowing the application of AI in the cryptocurrency field.

Industry Feedback: According to analysis by Delphi Digital, a few crypto projects have tried to introduce AI governance, but most are still in the experimental stage. Most analysts agree with Vitalik's view that there is indeed a risk of manipulation in AI governance, and caution is needed. However, some believe that the risks of AI governance are manageable, with the key being to design reasonable incentive mechanisms.

4. Economic Dynamics

1. The Federal Reserve's interest rate cut this week has become a foregone conclusion, with many uncertainties surrounding the policy path.

With a series of employment and inflation data being released, the “puzzle” of interest rate cut expectations has been completed — the market is fully pricing in that the Federal Reserve will restart interest rate cuts this week. The current focus of the market has shifted to the magnitude and pace of the rate cuts. Analysts generally believe that a 25 basis point cut by the Federal Reserve this week is highly probable, but the possibility of a 50 basis point cut cannot be ruled out. Against the backdrop of ongoing “uncertainty” in the Federal Reserve's monetary policy, the performance of global major asset classes will also vary depending on the specific circumstances.

The U.S. economy showed signs of slowing in the first half of 2025, with the annualized quarter-on-quarter growth rate of real GDP in the second quarter revised to 3.3%, down from 3.8% in the first quarter. While inflationary pressures have eased, they remain elevated, with the core PCE price index rising 4.2% year-on-year in July, above the Federal Reserve's target level of 2%. The labor market has also shown signs of weakness, with the unemployment rate rising to 4.2% in July and job growth slowing.

In this context, the Federal Reserve will hold its September interest rate decision meeting this week. The market widely expects a 25 basis point rate cut to alleviate the pressure of economic slowdown. However, some institutions predict that the Federal Reserve may cut rates by 50 basis points at once to send a more “dovish” signal. Analysts at Societe Generale believe that the Federal Reserve's moderately restrictive stance has been maintained for too long, leading to a situation of “over-tightening,” and therefore it is necessary to implement a more vigorous policy adjustment.

Investors will closely monitor the Federal Reserve's policy guidance from this meeting. A “hawkish” stance would suggest that there may be limited room for future rate cuts; if more easing signals are released, it could boost risk assets. Analysts point out that the Federal Reserve needs to seek a balance between supporting the economy and containing inflation, and its policy direction will directly impact future market trends.

Yang Zirong, an associate researcher at the Institute of World Economy and Politics of the Chinese Academy of Social Sciences, stated that after the Federal Reserve lowers interest rates, the stock market will benefit from the boost of monetary easing policies in the short term, and on the exchange rate level, the US dollar index has downward momentum. However, the market's expectations for the Federal Reserve's interest rate cuts are relatively full, and the key lies in the magnitude of the rate cuts, policy statements, and whether there will be new changes in the market's expectations of its independence.

2. The pressure of global economic slowdown is increasing, and high inflation has raised concerns about recession.

Since 2025, the pressure of global economic slowdown has continued to increase, with factors such as high inflation in major economies, a weak job market, and escalating trade tensions intertwining, raising market concerns about an economic recession.

The latest forecast from the International Monetary Fund ( IMF ) indicates that the global economic growth rate will slow down to 2.6% in 2025, a decrease of 0.7 percentage points from 2024. Among them, the growth rate of the U.S. economy is expected to drop to 1.1%, while the Eurozone is only at 0.7%, both below potential growth levels. The main risk facing developed economies is persistently high inflation, which forces central banks to continue raising interest rates, further suppressing demand. Emerging market economies are being dragged down by factors such as weak global demand and geopolitical tensions.

Regarding inflation, the IMF projects that the global inflation rate will remain high at 6.8% in 2025, primarily driven by rising energy and food prices. The core PCE price index in the United States rose by 4.2% year-on-year in July, while the inflation rate in the Eurozone reached as high as 9.8% in July, both significantly above their respective central banks' target of 2%. High inflation has exacerbated the decline in real income, suppressing consumer spending and further increasing the risk of economic slowdown.

The job market is also showing signs of weakness. The unemployment rate in the United States rose to 4.2% in July, with slower growth in the labor force. The number of employed persons in the Eurozone decreased by 0.2% quarter-on-quarter in the second quarter. The weakness in the labor market will further suppress household income and consumer spending, exacerbating the pressure of economic slowdown.

In addition, the escalation of geopolitical tensions has cast a shadow over the global economic recovery. The Sino-U.S. trade dispute continues to escalate, with both sides imposing tariffs, leading to a reshaping of global supply chains. The ongoing war in Ukraine has impacted energy and food supplies. These uncertainties have intensified the wait-and-see attitude of corporate investments.

Experts warn that if major economies fail to effectively address the current economic downturn pressures, the global economy will face the risk of recession. IMF Managing Director Kristalina Georgieva urges governments to adopt coordinated policies to respond and avoid the economy falling into a “dangerous downward spiral.”

3. China's economic slowdown drags down the pace of global recovery, experts call for reforms.

As the world's second-largest economy, China's economic performance is crucial for the global economic recovery. However, since 2025, China's economic growth has been lackluster, becoming a significant factor hindering the pace of global economic recovery, drawing widespread attention and calls for reform from domestic and foreign experts.

According to data from the National Bureau of Statistics of China, in the first half of 2025, China's GDP grew by 3.5% year-on-year, a noticeable slowdown compared to 5.7% in the same period last year. Multiple sectors, including manufacturing, real estate, and consumption, showed weak performance. In July, China's industrial production grew by 3.8% year-on-year, below expectations; the total retail sales of consumer goods increased by 2.7% year-on-year, with a further slowdown in growth.

The main reasons for the slowdown of the Chinese economy include: the persistent slump in the real estate sector, high local government debt, weak manufacturing exports, and insufficient consumer confidence. Among them, the bursting of the real estate bubble and the local government debt crisis are seen as core issues.

Experts point out that real estate and infrastructure investment account for about 30% of China's GDP, and their collapse will affect overall consumption and investment confidence. In addition, the China-US trade war has also made China's dependence on foreign trade a vulnerable link.

Former Japanese Ambassador to China, Kawato Banri, stated that China's economic crisis is unprecedented, and the complete collapse of the housing market will affect the entire population and the lifeblood of the country. He urged the Chinese government to take necessary reform measures to address the risks of prolonged economic downturn.

The International Monetary Fund has repeatedly urged China to accelerate its reform efforts. The organization believes that China should speed up its deleveraging process to mitigate local government debt risks; accelerate state-owned enterprise reform to improve production efficiency; relax household registration system restrictions to promote the free movement of people, among other measures. Only by deepening reforms can China's economy regain momentum and contribute to the recovery of the global economy.

The US Dollar Index continues to weaken, which is beneficial in alleviating pressure on emerging markets.

With the expectation that the Federal Reserve will start a rate-cutting cycle this week, the dollar index continues to weaken, providing breathing room for emerging market economies. Analysts believe that the depreciation of the dollar will help alleviate the debt pressure in emerging markets and create favorable conditions for their economic recovery.

The US dollar index has continued to decline since the middle of 2025, dropping nearly 10% within the year, and reporting at 97.98 by mid-September. The softness of the dollar is primarily influenced by expectations of a shift to a more accommodative monetary policy by the Federal Reserve. The market widely anticipates that the Federal Reserve will announce a 25 basis point rate cut this week and release more dovish signals to support economic recovery.

The depreciation of the US dollar will directly alleviate the debt burden of emerging market economies. Most emerging economies have external debts denominated in US dollars, and a weaker dollar will reduce their repayment costs. In addition, the relative depreciation of the local currency will also boost export competitiveness, which is beneficial for promoting economic growth.

Emerging market economies have long been troubled by the “three highs”: high inflation, high interest rates, and high debt. A weakening dollar will help alleviate this predicament. Inflationary pressures are expected to ease, creating room for central banks to cut interest rates; the cost of debt will decrease, reducing fiscal burdens; and the export situation is improving, making economic recovery likely.

However, experts also warn that emerging market economies still face many uncertainties, such as geopolitical tensions and weak global demand. Relying solely on the depreciation of the dollar is unlikely to fundamentally reverse the downturn. They need to seize this opportunity to accelerate structural reforms, improve economic resilience, and achieve sustainable development.

The International Monetary Fund calls on emerging market economies to strengthen coordination of macroeconomic policies, maintain financial stability, promote trade and investment liberalization, and enhance productivity and competitiveness. Only in this way can emerging markets truly get out of difficulties and regain development momentum.

5. Regulation & Policy

1. The Bank of England plans to set a cap on stablecoin holdings, provoking strong opposition from the cryptocurrency industry.

Officials from the Bank of England previously stated that they plan to advance proposals for holding limits on all systemic stablecoins—an individual holding limit of £10,000 to £20,000 and a corporate limit of £10 million. The proposal aims to guard against the impact of stablecoins on bank system deposits and to maintain financial stability.

The Financial Times reported that the cryptocurrency industry is calling for the Bank of England to abandon a proposal that would impose stricter regulations on the rapidly growing stablecoin market than those in the US or EU. Tom Duff Gordon, Vice President of International Policy at Coinbase, stated: “Setting a cap on stablecoins is detrimental to UK savers, the City of London, and the pound; no other major jurisdiction sees the need to implement a cap.” Simon Jennings, Executive Director of the UK Cryptoasset Business Council, pointed out that stablecoin issuers cannot know the identity of token holders in real time, and enforcing a cap would require an expensive and complex new system.

This move has attracted market attention as it pertains to the development prospects of stablecoins in the UK. Analysts believe that overly strict regulation could stifle innovation and lead to a business exodus. In stark contrast to the more lenient regulatory strategies adopted by the US and the EU, it highlights the global divergence in regulatory approaches to stablecoins.

2. Hong Kong explores the “regulatory sandbox” model to promote both digital asset innovation and regulation.

The CEO of Hong Kong Cyberport, Zheng Songyan, stated that to balance regulation and market vitality, Cyberport has launched a stablecoin and digital asset pilot project, selecting 9 cross-industry cases from over 200 applications covering finance, logistics, healthcare, etc. (, through end-to-end scenario validation ) including issuance, retail, anti-money laundering, and other links (, to create replicable industry templates and provide the government with technical challenges and regulatory references.

Zheng Songyan emphasized that the pilot program aims to explore the “regulatory sandbox” model, which not only prevents risks but also promotes innovation, helping Hong Kong become a hub for digital asset technology. Currently, Cyberport has attracted American data auditing companies, the blockchain team from Zhejiang University, and mainland virtual currency tracking enterprises to settle in. In the future, it will continue to collaborate with the government to build a healthy ecosystem and enhance Hong Kong's global competitiveness in the digital asset field.

This initiative reflects Hong Kong's prudent attitude towards digital asset regulation, allowing for a pilot program to mitigate risks while also leaving room for innovation. Industry insiders believe that this “regulatory sandbox” model will help Hong Kong maintain its competitiveness in the digital asset sector and attract more businesses and talent.

) 3. The Federal Reserve's interest rate cut expectations are rising, and the cryptocurrency market is paying attention to policy trends.

With the release of a series of employment and inflation data, the market has fully priced in the Federal Reserve's restart of interest rate cuts this week. The current focus of the market has shifted to the magnitude and pace of the rate cuts. Analysts generally believe that a 25 basis point rate cut by the Federal Reserve this week is highly likely, but a 50 basis point cut cannot be ruled out.

Against the backdrop of the “suspense” surrounding the Federal Reserve's monetary policy pace, the performance of global major asset classes will vary depending on specific circumstances. The cryptocurrency market will also be affected. On one hand, expectations of interest rate cuts are likely to drive up risk assets; on the other hand, if the Federal Reserve's policy stance leans towards hawkish, it may trigger market volatility.

Experts indicate that after the Federal Reserve cuts interest rates, the stock market will benefit in the short term from the boost of monetary easing policies. In terms of exchange rates, the US dollar index has downward momentum. However, the market's expectations for the Federal Reserve's interest rate cuts are relatively sufficient, and the key lies in the extent of the rate cuts, the policy statements, and whether there will be new changes in market expectations regarding its independence.

Cryptocurrency analysts advise investors to closely monitor the results of the Federal Reserve meeting. Amidst decision-making disparities and political pressure, the FOMC results may trigger significant volatility. Traders are advised to reduce leverage exposure and pay attention to the battle between the resistance zone of Bitcoin at $117,000 and the support level at $114,000.