The new Federal Reserve Chair is about to take office, and the market is highly focused on the direction of its monetary policy. Once the rate cut process is confirmed, a decline in the US dollar is highly likely, and in such a scenario, capital will inevitably seek new safe-haven and appreciation channels.

Bitcoin and Dogecoin, as representatives of risk assets, tend to perform well in environments with ample liquidity. Historical experience shows that loose monetary cycles are usually accompanied by accelerated capital inflows into digital assets—once dollar depreciation expectations are formed, institutions and retail investors alike tend to allocate hedging tools.

However, the logic behind this wave of market movement is far more than just cryptocurrencies. Traditional risk assets such as stocks and commodities will also benefit from liquidity release. The valuation logic of the entire financial market is being reconstructed; this is a systemic capital reallocation process, not an isolated rise in a particular sector. From another perspective, this precisely indicates that the current market environment is favorable for all risk assets.