2026-01-14 05:32:46

Federal Reserve Chair Powell has clarified that recent policy adjustments center on interest rate management. This monetary stance carries significant implications for crypto asset valuations, given the inverse relationship between rate cycles and alternative asset demand in digital markets.

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DaoResearcher

· 15h ago

According to the economic model in the white paper, there is indeed an inverse correlation between the Federal Reserve's rate cut cycle and the liquidity premium of altcoins... but the problem is that the market pricing mechanism itself has incentive misalignment. What I mean is, assuming the rate cut is valid, why isn't the coin price rising as sharply? It is worth noting that there may be a hidden governance failure here—retail investors' token weighted voting power is too large, which leads to market expectations being distorted. From on-chain data, it appears that during this rate cut cycle, institutional holdings are actually decreasing, which is very thought-provoking.

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ETHmaxi_NoFilter