#美联储降息展望 encryption market has finally seen a turnaround after experiencing a slump at the end of October, and market sentiment is gradually recovering from the previous panic.

The cautious observation period after the significant drop on October 11 seems to be over. Currently, multiple positive factors are starting to converge: capital is flowing back into the market, the approval of altcoin ETFs by regulators, along with the upcoming expectations of interest rate cuts, all of which are injecting new vitality into the market.

It is worth noting that institutional investors are increasing their position allocation. This month, the net inflow into Bitcoin spot ETFs has exceeded $4.2 billion, with financial giants represented by BlackRock actively buying in. The overall allocation ratio of institutions to encryption assets has reached a historic high of 5%. Even traditional financial institutions like Morgan Stanley and JPMorgan have begun to adopt an open attitude towards encryption assets. Although there has been a certain degree of fund outflow from Ethereum ETFs, this seems more like investors switching tracks, redirecting funds towards Bitcoin and Solana, which are considered to have greater potential among encryption assets.

The prospects for altcoin ETFs are equally exciting. U.S. regulators have approved products related to Solana and Litecoin, and there are 155 related products awaiting approval. This effectively opens the door for more encryption assets to access compliant funding, and if all are approved, market liquidity will see a significant boost.

The macroeconomic environment also provides favorable support. The Federal Reserve is likely to implement a rate cut policy, and the weakening trend of the US dollar prompts funds to flow into risk assets, while the encryption market attracts more attention due to its innovative narrative and development potential. The gradual easing of the regulatory environment, along with positive on-chain data, such as the increase in DeFi locked value and the rise in futures positions, indicates that bullish forces are gaining dominance.

The recent market rally seems to be supported by solid fundamentals, with increased institutional participation, accelerated compliance processes, and enhanced liquidity providing substantial support to the market. Looking ahead, the encryption market is likely to continue strengthening steadily.