Analyst: Expectations of interest rate cuts rise in resonance with SEC's new policies, market sentiment rebounds

On August 4th, according to The Block, Vincent Liu, Chief Investment Officer of Kronos Research, stated that the current market is showing a "cautiously optimistic" sentiment amidst macroeconomic uncertainty and institutional buying. The Fear and Greed Index is trending towards' greed ', with whale buying and expectations of interest rate cuts driving traders to reallocate risk assets. Investors are paying attention to the US July CPI data, which will be released on August 12th, as a key indicator for the next round of interest rate hike or cut decisions. Although the Federal Reserve kept interest rates unchanged at the July FOMC meeting and Powell stated that the September rate cut still depends on economic data, CME Federal Reserve observation data shows that there is a more than 80% probability that market expectations will be lowered by 0.25 percentage points. In addition, Liu believes that the "Project Crypto" launched by the US SEC may benefit the market in the medium to long term. This project will reduce regulatory uncertainty, promote DeFi growth, and enhance market confidence by clarifying token classification and introducing DeFi innovation exemption mechanisms.