Friends who are involved in stablecoin wealth management may not have thought about it, but your returns are actually closely linked to the actions of the Federal Reserve.

Simply put, when the Federal Reserve is in a rate hike cycle, the global cost of US dollars rises. Leading exchanges, in order to attract more stablecoin funds, have to raise their wealth management interest rates to compete. At this time, the interest rate spread is often the widest, and your arbitrage profits rise accordingly. Conversely, once the cycle shifts to rate cuts, the cost of funds decreases, and the wealth management interest rates on exchanges inevitably follow suit, narrowing the interest spread and naturally shrinking your returns.

This is not a complicated formula; it’s the basic logic of capital seeking profits. To have confidence in your strategies, you must constantly pay attention to the Federal Reserve’s policy signals—although no one can predict with perfect accuracy, understanding the relationship between your strategies and global capital flows can help you develop more mature investment thinking and better identify where opportunities and risks truly lie.