The global funding environment is quietly undergoing a huge change. The Fed's gates have opened again, and crypto assets, once considered "alternative assets", are directly targeting this wave of liquidity.

This is not just a rate cut decision; it is a reshuffling of the entire global Liquidity landscape. In just ten days, the Fed has utilized multiple tools to inject Liquidity into the market, while the Crypto Assets market has quietly become the protagonist of this funding feast.

The logic behind it is quite simple: the yields on traditional financial assets are artificially suppressed, and capital is seeking an exit like a flood that has burst its banks. The latest data shows that the scale of negative-yield bonds has once again surpassed the $18 trillion mark. In such an environment, Bitcoin's seemingly crazy volatility is viewed by institutional investors as a kind of "stable asset" in a certain sense. Irony, right? But this is the reality.

**Fed's $38 billion "flash strike"**

What happened in the past ten days? On December 1, the Fed released $13.5 billion to the banking system through overnight repurchase operations, marking the second-largest liquidity injection in a single day since the COVID-19 pandemic.

Just 8 days later, on December 9th, the news directly shook the market - Fed Chairman Powell announced a 25 basis point rate cut, along with an emergency injection of $15.7 billion, with an expected continuous inflow of $1.5 trillion into the market. This set of measures completely rewritten the market's expectations for liquidity.

In total, hundreds of billions of dollars in liquidity flooded in a very short time. What does this signify? The quantitative tightening program (QT) that has been "bleeding" the market since 2022 has officially come to an end. The Fed withdrew over $2 trillion from the market during that more than three years, and now it is finally reversing course.

The speed of this transition has caught many traditional investors off guard. However, those with keen instincts have already begun to quietly shift their capital—they are looking for assets that can achieve excess returns in a liquidity-rich environment. Crypto Assets have perfectly hit this point.