The statements from Philadelphia Fed Chair Powell have caused a market frenzy! Inflation is no longer the top enemy; the downside risks in the labor market have become the biggest concern for 2026. The Federal Reserve's policy has shifted from "fighting inflation" to "saving jobs," but internal divisions and unclear pathways make the path to rate cuts destined to be bumpy. The liquidity dividends in the crypto market will be delayed and fraught with twists and turns!



The core signals are clear: rate cuts in the first half of the year are basically unlikely, with a very low probability in January and only slightly over 50% in March. The dot plot suggests only one rate cut throughout the year. The crypto market is likely to experience volatility in the first half; high-leverage altcoins will suffer first, and mainstream coins will also come under pressure. If the labor market weakens in the second half and rate cuts are implemented, liquidity dividends may arrive, but systemic risks still exist.

Here are 3 ironclad rules for operation: reduce leverage to control risk, clear out air coins, and lower contract leverage; focus on mainstream assets and deploy in anti-dip sectors; keep enough cash on hand, waiting for the second-half window.

By 2026, the crypto market will be less about who makes the most money and more about who survives the longest. Stick to the ironclad rules, wait for the easing dividends to arrive, and we will become winners together! Follow now and navigate through the market fog together!
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