The Federal Reserve’s interest rate cut opens the floodgates of liquidity; take control of your personal assets with XBIT Wallet.
On December 14th, CoinWorld reported that investors are shifting their focus from the noise of macroeconomic news to assets they can actually control, and the cryptocurrency market is undergoing a transformation from passive acceptance to active control. While Coinbase analysts interpreted the Federal Reserve’s shift towards “light quantitative easing,” Bitcoin’s price remained stable around $92,000. The crypto market reacted calmly to the expected 25 basis point rate cut, with technical analysis showing the MACD indicator nearing positive territory and a weakening US dollar providing potential support for risk assets. However, the real market shift is occurring at a deeper level: as the Fed’s policy becomes clearer, individual sovereignty over digital assets is becoming a core issue in this new era.
01 Liquidity Shift
Financial markets are undergoing a subtle but significant shift. The Federal Reserve’s policy focus is expanding from simple interest rate adjustments to broader balance sheet management. Last week, the Fed announced a 25-basis-point rate cut, a decision largely expected by the market. However, what truly captured analysts’ attention was its announced “Treasury Reserve Management Purchase” program. According to Coinbase’s institutional analysis, this liquidity injection arrived earlier than anticipated and could continue until April 2026. Financial observers view this shift from balance sheet reduction to net injections as a form of “light quantitative easing” or “implicit quantitative easing.” This policy shift, coupled with federal funds futures market indicators suggesting two more rate cuts in the first nine months of 2026, suggests that market hawkish sentiment may be lower than expected.
02 Power Restructuring
Meanwhile, changes in the Federal Reserve leadership are drawing significant attention from global investors. Data from prediction markets reflects this uncertainty, with the probability of Warsh being nominated by Trump surging from 7% to 38% on Polymarket. Another prediction platform, Kalshi, shows a similar trend, with Warsh’s nomination probability rising from 10% to 41%. When asked if Warsh was the top candidate for Fed chair, Trump replied, “Yes, I think he is. I think both Kevins are great.” Wall Street has reacted positively to this potential personnel change. JPMorgan CEO Jamie Dimon publicly endorsed Warsh as the next Fed chair, calling him a “great chair.” However, not all market participants welcome this development. Some economists worry that Trump might attempt to influence the Fed’s independence, aligning its policies with the White House’s political goals.
03 Market Reaction
According to CoinWorld, changes in macroeconomic policies are driving structural adjustments in the crypto market. Bitcoin prices have remained relatively stable after the interest rate cut, still within a small upward channel. Technical indicators are bullish, with the MACD indicator nearing positive territory, and a weakening US dollar providing further support. Analysts point out that if Bitcoin breaks through the trendline resistance level, the target price could be between $97,000 and $108,000; if it falls below this resistance level, it could test the $80,000 support level. In the DeFi sector, the AAVE token price rose by about 9%, approaching $205, boosted by market expectations for its V4 upgrade. This upgrade will adopt a redesigned liquidation engine designed to improve capital efficiency and risk control. The market reacted positively to this technical upgrade, with open interest increasing by $34 million in 24 hours, indicating a renewed increase in leveraged trading participation.
04 Individual Asset Sovereignty
In this context of increased macroeconomic uncertainty, personal control over crypto assets has become more crucial than ever. Knowledge of private key management has become a fundamental skill for Web3 participants. When a user creates an account in a self-custodied wallet like XBIT Wallet, the system generates a recovery phrase consisting of 12 mnemonic words. These mnemonic words, based on the BIP39 standard, can derive a series of cryptographic keys. These 12 words represent ultimate control over the user’s assets; anyone who possesses these words has complete control over the assets within the associated wallet. This means users must securely back up these mnemonic words and ensure they are not leaked to anyone.
Hot wallet security requires users to understand basic security practices. Never store mnemonic words on connected devices or in the cloud; instead, back them up using physical media such as metal plates and store them in multiple secure locations. Also, ensure devices are free of malware, use strong passwords to protect wallet applications, and enable all available security features. In terms of operational experience, users should regularly conduct small test transactions to familiarize themselves with the process, store large amounts of assets in hardware wallets or offline solutions, and remain vigilant against anyone requesting private keys or mnemonic words.
05 Testing the Future of Finance
According to data from the CoinWorld app, with the Federal Reserve’s interest rate cuts creating a new liquidity environment, crypto market participants have more opportunities to explore innovative financial instruments. The XBIT decentralized exchange provides a unique testing ground where users can test various digital asset trading strategies in a real-world environment. The XBIT Wallet, a decentralized web3 wallet, allows users to explore multiple asset classes, including cryptocurrencies, memes, and even tokenized US stocks, in a secure environment. This comprehensive asset management experience is attracting users seeking greater control over their personal finances.
Currently, a special testing opportunity is open. XBIT has launched a closed Alpha version on Galxe, offering a 1000 USDT reward pool. Participants can head to the Galxe task page
(https://app.galxe.com/quest/jWuQhF89bUqUNRcBFWzwVC/GCuHdtYq2h) to grab an early bird spot. Users who complete the task and provide feedback can share the rewards. This is a one-month opportunity to test full-asset trading, including cryptocurrencies, memes, and tokenized US stocks, all from a self-custodied wallet.
06 Basic Safety Practices
When participating in these emerging financial opportunities, asset security must be the top priority. Users need to understand the basic principles of wallet security. A private key is a digital credential controlling crypto assets, consisting of a long string of characters, typically represented by a mnemonic phrase of 12 or 24 characters. When backing up a mnemonic phrase, physical media such as paper or a metal plate should be used, not digital screenshots or text files. Multiple copies should be stored in different secure locations to prevent accidental loss in a single location. XBIT Wallet, a decentralized wallet and web3 economic pass, achieves 100% user control over assets through a non-custodial architecture, completely avoiding the moral hazard of centralized platforms. Its core security logic is based on innovative private key management: the mnemonic phrase generated when a user creates a wallet must be properly stored, as this is the only way to restore wallet access.
As Warsh’s nomination probability in the prediction market jumped overnight from 7% to 38%, a Wall Street trading firm’s screen displayed the slight fluctuations in Bitcoin’s price around $92,000. The market reacted remarkably calmly to this Federal Reserve personnel change, with most traders’ eyes already turned to a more distant future—the financial future built by self-custodial wallets and decentralized exchanges. There, the sovereignty of individual assets is no longer subject to changes in central bank officials or fluctuations in interest rate decisions.