Just saw the news, the Fed injected 6.8 billion dollars into the market at 9 AM Eastern Time today. In simple terms, it means continuing point shaving.
From a funding perspective, point shaving will indeed feed a wave of sugar to the risk assets in the crypto space. The market's short-term sentiment will definitely be boosted, and mainstream coins and BTC may follow with a liquidity rebound. But don't just go all in on contracts when you hear point shaving; that's the easiest way to get wrecked.
The key point is that 6.8 billion is not that large. In the context of the Fed's scale, this is a technical point shaving, not a real QE expansion. So it's reasonable to be a bit optimistic, but don't get overly excited—the difference is still significant.
What's interesting is this timing. As the end of the year approaches, liquidity was supposed to tighten, but the Fed chose to inject a small amount of liquidity at this juncture. Is it a preemptive measure against a year-end cash crunch? If such operations become more frequent in the coming weeks, the market's expectations for liquidity next year might gradually become more optimistic. This signal is indeed worth paying attention to.
However, to be honest, the medium to long-term market trend still depends on next year's interest rate policy and macroeconomic fundamentals. Liquidity can push up assets, but it can also retreat instantly. Those who truly make stable profits are often the ones who remain calm in such times, rather than following the crowd and making erratic moves. When water comes, first see clearly where it flows, and then decide whether to follow or not.
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
Just saw the news, the Fed injected 6.8 billion dollars into the market at 9 AM Eastern Time today. In simple terms, it means continuing point shaving.
From a funding perspective, point shaving will indeed feed a wave of sugar to the risk assets in the crypto space. The market's short-term sentiment will definitely be boosted, and mainstream coins and BTC may follow with a liquidity rebound. But don't just go all in on contracts when you hear point shaving; that's the easiest way to get wrecked.
The key point is that 6.8 billion is not that large. In the context of the Fed's scale, this is a technical point shaving, not a real QE expansion. So it's reasonable to be a bit optimistic, but don't get overly excited—the difference is still significant.
What's interesting is this timing. As the end of the year approaches, liquidity was supposed to tighten, but the Fed chose to inject a small amount of liquidity at this juncture. Is it a preemptive measure against a year-end cash crunch? If such operations become more frequent in the coming weeks, the market's expectations for liquidity next year might gradually become more optimistic. This signal is indeed worth paying attention to.
However, to be honest, the medium to long-term market trend still depends on next year's interest rate policy and macroeconomic fundamentals. Liquidity can push up assets, but it can also retreat instantly. Those who truly make stable profits are often the ones who remain calm in such times, rather than following the crowd and making erratic moves. When water comes, first see clearly where it flows, and then decide whether to follow or not.