Recently, the US government announced a direct purchase of $200 billion in mortgage-backed securities, sparking heated discussion in the market. Rather than being a routine operation, this represents a rapid policy shift—executed without the usual hearing process. What impact might this have on the crypto market? It’s worth a deep analysis.

The goal of the bond purchase is clear: to lower mortgage interest rates. Latest data shows that the 30-year mortgage rate has fallen below 6%, hitting a new low since February 2023. This not only affects the real estate market but also signals a broader economic message—market liquidity is increasing.

Why is this so important for the crypto space? Because cryptocurrencies, as high-risk assets, are particularly sensitive to market liquidity. Historically, whenever the Federal Reserve implements quantitative easing, risk assets tend to rally. The period when Bitcoin surged from a few thousand dollars to $60,000 was precisely during a large-scale liquidity release.

Although this $200 billion bond plan isn’t a direct Fed operation, Fannie Mae and Freddie Mac are backed by the US government’s credit. This indicates a deliberate effort by the government to promote a loose financial environment. When the central bank or government injects liquidity into the market, funds tend to seek yield opportunities. Risk asset markets, including cryptocurrencies, naturally become targets for capital inflows.

In simple terms, this is an operation close to QE. In an environment with ample liquidity, investors will reallocate assets to seek higher returns. As one of the most sensitive risk markets globally, the crypto market is hardly immune to these effects.

For ordinary participants, understanding the connection between policy and market is crucial. Don’t just listen to surface-level news; instead, observe the underlying capital flows and liquidity trends. The policy orientation reflected in this bond purchase plan is a signal worth paying attention to.