Opportunities often lurk in the anxiety of the market, and this time the Fed's liquidity operations may be quietly rewriting the rhythm of the crypto market.

December 22 is a key day — the Fed made a technical adjustment, injecting $6.8 billion in liquidity into the market all at once. In just ten days, the cumulative scale approached $38 billion. This is the first targeted easing operation since 2020, and the market's reaction has been turbulent.

Why do the Fed's actions have such a strong impact on coin prices? This question is actually easy to answer. Just look at history. When the Fed launched unlimited QE in 2020, Bitcoin skyrocketed from $5,000 to nearly $69,000; in contrast, during the aggressive interest rate hike cycle in 2022, Bitcoin plummeted from its peak to $15,000. This correlation is too obvious – Bitcoin is essentially an asset that is extremely sensitive to liquidity.

The current situation is a bit delicate. The Fed cut interest rates by 25 basis points as expected in December, which sounds good. However, the subsequent forward guidance turned hawkish, expecting only one more rate cut by 2026. This "rate cut but very restrained" attitude caught the market off guard, and Bitcoin subsequently plummeted, briefly falling below $88,000.

However, the Fed is simultaneously releasing liquidity signals, which gives the market another space for imagination. When the Fed cuts interest rates while supplementing systemic liquidity, is this paving the way for subsequent policy adjustments, or is it hedging against certain risks? This question is worth exploring. The fluctuations of Bitcoin around $86,000 reflect the market's true mentality in this uncertainty—waiting for the next clear directional signal.