The Fed has once again turned on the "Faucet". For the first time in over three years, it has initiated a liquidity easing; will this really send Bitcoin to new highs? The discussions in the market about this issue are quite heated.

To be honest, the ample liquidity certainly stimulates high-risk assets. But the problem is that not all assets can equally share in this benefit. The price fluctuations of Bitcoin, a decentralized cryptocurrency, are influenced by too many factors—liquidity is just one of them. How the market atmosphere is, what the regulatory stance is, and whether technology can keep up, all these will affect investors' bottom-fishing decisions.

The key question is: Will this wave of Fed monetary easing really flood into the Bitcoin market? Looking at the actual situation in recent years, the answer is quite optimistic. After the approval of the Bitcoin spot ETF, the barriers for traditional institutions to enter have been significantly lowered. Statistics show that since the approval of the ETF, the scale of institutional funds flowing into the Bitcoin market has been considerable, pulling Bitcoin up from its low by more than 50%. If the Fed continues to ease monetary policy, this momentum will likely continue.

However, it's important to see clearly: liquidity is just a superficial factor. The progress of the Bitcoin industry ecosystem itself, and the implementation of industry applications, are what fundamentally determine whether prices can continue to rise. Relying solely on liquidity to create market conditions actually carries significant risks.