Gate Wealth Management Strategy: Crypto asset allocation and practical strategies through the interest rate cycle

With the US federal funds rate falling to the 3.5%-3.75% range by the end of 2025, global markets are in a critical phase of the transition from tightening to easing. In the traditional financial world, deposit interest rates have entered the “1 era”, which has prompted nearly 31 trillion yuan of funds to seek higher-yield financial outlets.

In the crypto space, the impact of macro interest rates and liquidity is equally profound. As a “macro-sensitive risk asset”, the transition of interest rate cycles directly affects the pulse of the crypto market. Understanding asset performance patterns under different cycles and flexibly adjusting allocations through tools like Gate Earn has become an essential skill for modern investors to protect and grow their wealth.

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Anchors of Cycles: Understanding how interest rates shape market logic

Interest rates can be called the “pricing anchor” of modern financial markets. When the central bank raises interest rates, it is essentially reducing the money supply, curbing inflation and excessive speculation, and guiding the cost of funds to rise. This process directly enhances the attractiveness of risk-free assets and puts pressure on growth assets that rely on future cash flows.

Conversely, the interest rate cut cycle releases liquidity and reduces financing costs. In traditional markets, this usually boosts risk assets, but it also compresses the return space for fixed income products such as deposits. In 2025, China’s one-year time deposit interest rate has generally fallen below 1%, and the five-year interest rate has also fallen to about 1.3%, prompting residents’ wealth to “move” to wealth management, funds and other markets on a large scale.

The crypto market is increasingly linked to this macrologic. The analysis pointed out that crypto assets are becoming more and more like “macro-sensitive risk assets”, and their prices will be repeatedly pulled by interest rates, inflation and global liquidity. Understanding this mechanism is the first step in cycle configuration.

Cyclical allocation map: Asset performance is differentiated under interest rate hikes and interest rate cuts

In different interest rate environments, the fate of various assets is very different. The laws of traditional markets provide valuable mirrors for our allocation in the crypto world.

The following table sorts out the general performance and logic of assets with different attributes under two typical cycles:

In an environment of interest rate hikes, investors should focus on defense and pursue deterministic returns. After the opening of the interest rate cut channel, the strategy should turn positive and prepare for capital appreciation.

A New Dimension of Crypto: When Traditional Cycles Meet Digital Assets

When applying the allocation logic of traditional cycles to the crypto market, we must recognize the unique attributes of the latter: higher volatility, 24/7 trading, and native yield mechanisms such as staking and yield farming.

“Crypto defense” under the interest rate hike cycle: When interest rates are high and liquidity is tightening, the crypto market as a whole is under pressure. At this time, the pursuit of deterministic returns is key. GUSD credentials in Gate Earn are a typical defense tool. As a digital certificate backed by real-world assets such as U.S. Treasuries, it is designed to provide stable income characteristics similar to traditional fixed income.

The “crypto growth engine” in the interest rate cut cycle: When the interest rate cut channel opens and liquidity expectations improve, the crypto market often ushers in a more favorable environment. At this time, investors can allocate mainstream crypto assets more actively. Gate’s Hold-to-Earn feature allows users to earn additional income on their holdings of BTC, ETH, and other assets without locking up.

According to Gate market data, as of January 30, 2026, the price of Bitcoin is reported at $84,195.9 and Ethereum is reported at $2,807.82. Under the expectation that the market will stabilize and the macro environment will turn friendly, the interest-bearing strategy of such core assets can help investors capture potential price upside opportunities while obtaining a stable cash flow.

Crossing the cycle: A one-stop configuration solution for Gate Earn

No matter what the macro environment the market is in, the most fundamental need of investors is to achieve steady appreciation of assets within their own risk tolerance. The diversified product matrix provided by Gate Wealth Management can meet the allocation needs across the cycle.

For investors seeking stability, GUSD or USDT regular savings can be used as the core ballast stone. Gate’s Yubibao USDT Flexible Savings has an annualized return rate of up to 6.8%, and after the upgrade, it supports instant arrival of redemption funds, providing returns that are much higher than traditional deposits while maintaining high liquidity.

For balanced investors who can withstand certain fluctuations, a “core + satellite” combination can be built. With BTC and ETH holding coins to earn interest as the core, hold and accumulate income for a long time; At the same time, allocate a portion of your funds to tools such as Gate Dual Investment. This type of product is based on an option derivative mechanism that can help investors capture opportunities in market volatility.

For enterprising investors, the interest rate cut cycle is a time to focus on the innovation track. You can explore innovative strategy products related to DeFi and Layer 2 in the Gate ecosystem. At the same time, the GT token, which is the core of the Gate ecosystem, is also worth paying attention to. Its price is deeply tied to the development of the platform’s ecosystem, and the current price is $9.52. The platform’s analysis has pointed out that as the ecosystem expands, the medium- and long-term potential is worth paying attention to.

After experiencing volatility in January, Bitcoin prices are improving in tandem with macro data, and market sentiment has shifted to cautiously bullish. Meanwhile, the Fed’s interest rate has entered a downward channel and is expected to slow further in 2026.

The direction of the macro tide is changing. On the Gate Earn platform, the product line has fully covered different risk appetites, from GUSD, which is stable with capital protection, to mainstream assets that are flexible and interest-bearing, to innovative strategies that capture trends. No matter how cycles turn, there’s always a tool that keeps up with or even transcends the pace of your crypto assets while keeping them safe.