Looking back at the long history of the crypto market, I have witnessed too many ups and downs. This potential dovish rate cut by the Federal Reserve makes me think of the crazy bull market at the end of 2017. Back then, the market was jubilant, and Bitcoin surged past the $20,000 mark. But upon closer inspection, there are hidden concerns.

The current situation is quite similar. The S&P 500 index is approaching a historical high, and investors are full of confidence in the economic outlook. However, if the Federal Reserve truly signals a dovish stance, it could instead imply economic weakness. In such a scenario, long-term US bonds might be sold off, which could then impact the stock market.

History always repeats itself astonishingly. After the crypto market frenzy in those years, there was a prolonged bear market lasting over a year. Now, should we also be wary of the risks brought by excessive optimism? After all, market cycles are always characterized by rises and falls, with the big waves sifting the sand.

At this critical moment, I recommend closely monitoring upcoming employment and inflation data. These figures could provide important clues about the market’s direction. At the same time, be alert to possible government interventions. History has shown us that when the economy faces challenges, governments tend to take action.

Having experienced over a decade of ups and downs in the crypto world, I know that the market will never be smooth sailing. Whether in a bull or bear market, staying clear-headed and managing risks well is the key to success. Let us learn from history and proceed cautiously in this potential "Santa Claus rally."