The Fed has started "point shaving" again. Last night at 10 PM, they injected $6.8 billion in liquidity into the market, marking the Nth operation in the past 10 days. In total, the cumulative injection has reached $38 billion.

People in the cryptocurrency circle are asking: Is this a positive signal? Will Bitcoin take off because of this?

**First, let's understand what a repurchase is**

The tool used by the Fed this time is called "repurchase agreement." Simply put, it means that banks pledge high-quality assets like government bonds to the Fed in exchange for short-term cash, and then repay the money to redeem them after one or two days.

This is completely different from QE (quantitative easing). QE is long-term point shaving, while repurchase is more like an emergency remedy—a short-term measure to alleviate year-end funding tightness.

**Why is the crypto world fixated on this?**

The logic is straightforward: Liquidity increases → market funds become abundant → financing costs decrease → hot money seeks an exit → high-risk assets are easier to be bought.

Cryptocurrencies belong to high-risk assets. Once additional liquidity flows in, prices are likely to react quickly. After the Fed restarted repurchases in October last year, Bitcoin rebounded by 7% in a single day, which is enough to demonstrate how sensitive the market is.

Especially at the end of the year, institutions are adjusting their positions, retail investors are looking for opportunities, and various funds are seeking exits. The additional Liquidity becomes a catalyst, easily boosting market sentiment.

**But don't rush to celebrate**

Here is a key issue that is often overlooked: the Fed has made it clear that this is just a technical operation and does not indicate a real shift in monetary policy.

However, the market always tends to "overinterpret". Every time a buyback signal is released, analysts start to paint a bullish picture, and retail investors get excited as well. But the reality is that liquidity is just a short-term emotional catalyst, not an engine for sustained growth.

If the macro environment does not improve—such as inflationary pressures still existing, weak employment data, and a slowdown in global economic growth—then the effects of short-term point shaving often dissipate quickly. After a price rebound, there may be a larger correction.

**How do smart people respond?**

First, focus on liquidity data, but don't be misled by short-term fluctuations. The impact of a single repo is actually quite limited; what really matters is whether there is a sustained trend of injection. Only if there is repeated point shaving over several days can we indicate that the macro attitude is indeed adjusting, and that is when it deserves serious attention.

Secondly, beware of the trap of "good news being fully priced in." The market often anticipates expectations in advance, and when the good news is actually implemented, a pullback may occur instead. At this time, those who chase the price increase are often caught.

Finally, maintain position discipline. Liquidity-driven market fluctuations are usually large and can easily cause one to lose direction. Set a stop-loss line, avoid chasing prices up or down, and keeping a steady mindset is more important than anything else.

**Summarize**

The Fed's "point shaving" will indeed bring a short-term emotional boost, but it won't change the long-term direction of the market. What really determines the trend of Bitcoin are still the macroeconomic situation, policy expectations, and the overall state of global Liquidity.

It's important to look at the data, but it's more important to understand the logic. Stay clear-headed amidst the volatility, and don't let every piece of news scare you into action; that's worth more than anything.