When the stock market rises, the Federal Reserve should cut interest rates—this view has recently attracted market attention.

The logical chain is quite clear: rate cuts + loose market liquidity directly boost risk asset valuations. Bitcoin, as a high-risk, high-reward asset class, usually performs the best during loose cycles.

Based on past experience, whenever liquidity gates open, on-chain funds start looking for an exit. If 2026 truly enters a rate-cutting cycle and liquidity continues to be released, can crypto assets represented by Bitcoin usher in a new round of upward space? The market seems to be betting on this possibility.

Of course, policy shifts are never one-way—the key still depends on actual changes in economic data and inflation pressures. But from a historical perspective, a loose monetary environment generally constitutes a long-term positive for Bitcoin.