$BTC $ETH $PEPE

Yesterday, the Federal Reserve's overnight repurchase operations made headlines, reaching a scale of $74.6 billion. At first glance, it’s indeed startling, but it’s important to clarify one thing—this is not some "big liquidity injection."

Simply put, this is technical maintenance. What is the Federal Reserve doing? Buying short-term bonds to inject liquidity into banks to get through the year-end tight period. What does true quantitative easing look like? The central bank uses real money to buy long-term government bonds, with funds flowing directly into the real economy and financial markets. These are two different things.

Think about it: last night’s $74.6 billion, after circulating among banks, ultimately still returns to the Federal Reserve’s account. This money doesn’t reach the exchanges at all, let alone flow into the crypto space.

**A few key understandings about the market:**

Sentiment is one thing; the reality is another. In the short term, the market may get excited, but don’t mistake this for the start of a bull market. The real focus is on whether the Federal Reserve’s balance sheet is truly expanding and whether the market supply of stablecoins is significantly increasing. These are the signals that drive Bitcoin’s continued rebound.

Liquidity returning from "tight" to "normal" is a completely different level from pushing towards "loose." In this kind of liquidity replenishment, don’t expect a comprehensive surge. Ultimately, crypto prices are still determined by market buying and selling forces, key support levels, and capital sentiment rotations.

In one sentence: this is about clearing the channels in the financial system, not about fueling risk assets. Keep an eye on on-chain data and make your own judgments—that’s the most reliable approach.