There is a trend worth noting: the Fed is set to inject $6.8 billion through a repurchase protocol at 10 PM tonight. This operation itself is not uncommon, but in the last 10 days, a total of $38 billion has been injected—officially described as "year-end liquidity management," but those in the industry understand that this rhythm is a boost to market sentiment.
Why take action now? It's the end of the year, and institutions are reallocating their funds. When liquidity tightens, problems can easily arise. The Fed's move is to support the system and prevent a "money shortage" from triggering a chain reaction.
What does this mean for the crypto market? To be honest, this influx of dollars is mainly flowing into the traditional financial system, but the expectation of abundant liquidity will spread. With more money, financing costs decrease, and some incremental funds will naturally seek new allocation directions, making the crypto sector easier to be revalued. Therefore, the market often interprets this kind of operation as an "indirect benefit."
Don't think too much: this adjustment is more like giving the market "saline solution" rather than pouring money to feed the market. It can prevent the market from bleeding, but it's not enough to start a new bull market. Professional traders usually take advantage of the emotional fluctuations of such signals to make swing trades, rather than chasing trends. $BTC
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.
There is a trend worth noting: the Fed is set to inject $6.8 billion through a repurchase protocol at 10 PM tonight. This operation itself is not uncommon, but in the last 10 days, a total of $38 billion has been injected—officially described as "year-end liquidity management," but those in the industry understand that this rhythm is a boost to market sentiment.
Why take action now? It's the end of the year, and institutions are reallocating their funds. When liquidity tightens, problems can easily arise. The Fed's move is to support the system and prevent a "money shortage" from triggering a chain reaction.
What does this mean for the crypto market? To be honest, this influx of dollars is mainly flowing into the traditional financial system, but the expectation of abundant liquidity will spread. With more money, financing costs decrease, and some incremental funds will naturally seek new allocation directions, making the crypto sector easier to be revalued. Therefore, the market often interprets this kind of operation as an "indirect benefit."
Don't think too much: this adjustment is more like giving the market "saline solution" rather than pouring money to feed the market. It can prevent the market from bleeding, but it's not enough to start a new bull market. Professional traders usually take advantage of the emotional fluctuations of such signals to make swing trades, rather than chasing trends. $BTC