As the Fed's September policy meeting approaches, market expectations for interest rate cuts continue to rise. This expectation aligns not only with Trump's recent policy proposals but may also inject new vitality into Bitcoin and the entire Crypto Assets market.

Although the Fed meeting at the end of July kept interest rates unchanged, this instead provided a relatively stable environment for the crypto market. According to the latest data from the CME FedWatch Tool, the market generally expects the Fed to cut interest rates by 25 basis points at this meeting, with a probability as high as 93.2%.

The current high interest rate environment is suppressing investors' risk appetite, leading many to adopt conservative strategies. However, historical experience shows that interest rate cuts often serve as a strong catalyst for the crypto market. Looking back at the pandemic period in 2020, the Fed's significant interest rate cuts triggered the most explosive bull market in Bitcoin's history.

The impact of interest rate cuts is mainly reflected in two aspects: first, increasing market liquidity and boosting asset prices; second, stimulating market activity and attracting more participants. These two factors will be beneficial for the development of the Crypto Assets market.

However, the extent of the interest rate cut is the key to determining the market direction. If the Fed only cuts rates slightly by 25 basis points, it may be seen as a tentative action, and the market reaction may be relatively mild. However, if the rate cut reaches 50 basis points or more, combined with the expectations for fiscal stimulus that may arise from the mid-term elections at the end of the year, it could very likely push Bitcoin to break its historical high and even drive the entire Crypto Assets market to set a new market value record.

It is worth noting that the market may have partially digested the expectations of interest rate cuts, so a short-term adjustment of "buy the expectation, sell the fact" cannot be ruled out. In any case, the upcoming Fed decision will undoubtedly be an important factor influencing the trends of risk assets such as Bitcoin, and investors should closely monitor related developments.