In the early hours, the Federal Reserve once again injected $16 billion in liquidity, and the market responded accordingly. Bitcoin hovers around $88,500, fluctuating within a narrow range of $87,000–$89,500. Is this round of injection really just simple liquidity infusion?

From the data, although the $16 billion scale is not particularly large, it reflects a clear signal — the Federal Reserve is adjusting its stance. As early as early December, it ended quantitative tightening (QT), and even once injected $13.5 billion at once, setting a new high since the pandemic. Why such a strong move? The answer is harsh: the market is short of money. US tech stocks plummeted, the crypto market experienced an $180 million liquidation in a single day, and even major international investment institutions are warning that AI investments are facing a "risk phase." Liquidity exhaustion has already touched core assets. Every injection by the Federal Reserve is essentially giving the market "artificial respiration."

The current market shows typical "year-end syndrome" characteristics. Ethereum is defending the $2,900 line, with 24-hour trading volume down 12%, and daily liquidation only $180 million — much milder compared to the $600 million scale in mid-month. This looks like a balance between bulls and bears, but the shrinking trading activity has long indicated everything. The market is waiting — waiting for economic data validation, waiting for the Federal Reserve's policy confirmation, and also waiting for a wave of opportunities before the year ends.

The key question is: how long can this "artificial respiration" last? If the economic fundamentals remain weak, liquidity support may quickly run out. In the short term, whether Bitcoin can effectively break through $89,500, and whether Ethereum can hold steady above $2,900, these key levels will determine if a rebound can occur at the end of the year.