Brothers, the news is here: The Federal Reserve will again inject 6.8 billion through repurchase agreements tonight at 10 PM. The key point is not this time, but over the past 10 days it has injected a total of 38 billion - it's called "year-end liquidity management", but those familiar with the crypto space understand that no matter how this money comes, it sounds like good news.
Why now? As the year-end approaches, institutional demand is high and liquidity can easily tighten. The Federal Reserve is doing this to prevent unexpected market crashes due to a "liquidity crunch".
What impact does this have on the crypto space? Although this money mainly flows into the traditional financial system, the expectation of liquidity will spread. With more money, financing costs are lower, and some funds may flow into the crypto market, making it easy for the market to interpret as a "potential positive".
In summary: The Federal Reserve's recent actions can be understood as "giving the market an IV drip", not feeding it steak. It can support the market, but it is not enough to trigger a bull market. Smart money will take advantage of emotional fluctuations to make short-term trades rather than blindly chasing after increases. $BTC
