The recent movements in the stock market have indeed been significant. The A-share market's half-day trading volume surpassed 1.84 trillion yuan, the Shanghai Composite Index hit a ten-year high, and the central bank also signaled potential reductions in reserve requirements and interest rates. For many people, this might seem like a matter of traditional financial markets. But in reality, the liquidity logic behind it has great significance for the crypto space.



Historically, during every easing cycle, the crypto market rarely stays on the sidelines. After the central bank's statements about "flexible reserve requirement and interest rate cuts," actual actions usually follow within 1 to 2 weeks, indicating that idle funds in the market are increasing. The explosive growth in trading volume already shows that off-market funds are accelerating their inflow. What does this phenomenon usually mean? Funds are searching for new outlets.

From a global market perspective, asset performances across countries are clearly diverging, and investors naturally turn their attention to assets with higher volatility and greater upside potential. The attractiveness of the crypto market is rising at this point—liquidity expectations are strengthening, market sentiment is igniting, and once the main market stabilizes, the spillover effect of funds is likely to rotate into digital assets.

So what is the key now? Watch the market trend indicator. Once BTC and ETH break out with increased volume, the major trend may be established. Meanwhile, strong ecosystem tokens and popular concept sectors (such as SUI, BREV, PEPE) could become focal points for capital chasing. This isn’t about chasing highs and rushing in, but about seizing the opportunity to position before the trend starts—buying on dips and waiting for the market to truly unfold.

History may not repeat itself directly, but market rhythms are always traceable. The traditional financial markets have already signaled their signals; is a big move in the crypto space far behind? The key is to find the right timing and prepare psychologically.

(This article is for market opinion analysis only and does not constitute investment advice. Please conduct your own research and make decisions.)
BTC-0.23%
ETH-0.91%
SUI-0.17%
BREV-2.94%
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QuietlyStakingvip
· 01-07 14:07
Wait a minute, isn't this logic too smooth? It feels like every time it's the same story. As soon as the central bank makes a statement, the crypto circle reacts? How come I haven't seen this work every time before? But this wave of SUI does look a bit interesting, just worried it might be another false alarm. Liquidity has come in, but in the end, it all flows into Bitcoin and Ethereum. Small coins still rely on luck. I'm just here watching the show. Anyway, I've already prepared myself mentally; I can afford to lose.
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ChainWallflowervip
· 01-07 06:59
Having extra idle funds definitely leads to flowing into the crypto market, this logic makes perfect sense. When the central bank takes action, Bitcoin becomes volatile—how many times has that happened? Will SUI and PEPE really take over, or is it just another round of cutting the leeks? Buying on dips sounds simple, but the key is knowing where the bottom really is. A ten-year high—should the crypto market also hit a ten-year high? Only when the overall market stabilizes will I dare to enter; otherwise, it's just catching falling knives. Liquidity spillover effect... sounds like other people's money is coming in. Forget it, I’ll just observe for now—no chasing highs and getting caught again.
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OPsychologyvip
· 01-07 06:50
Once the signal of rate cuts and reserve requirement reductions is out, is the crypto circle about to start storytelling again? They speak confidently, but can we really wait for the funds to overflow this time? Wait, why do I feel like this logic has been used in every bull market? The key is still betting on the right timing. Breaking the support level for BTC and ETH is a necessary condition, but honestly, it's still a bit early to jump in now; we need to watch closely. Don’t be fooled by the price increases of concept coins; tokens like SUI have already been pumped before, so be cautious if you enter now. The most painful advice is "don’t chase the high," but in reality, most people buy at the peak. The key question is, will liquidity really flow into the crypto market, or will it continue to rotate in the stock market? Interesting—when the central bank injects liquidity, crypto prices lag behind, while the stock market surges. When will this rotation start? How to build psychological resilience? Being mentally strong when losing money is useless; that’s the real test. After reading all this, it just says to buy on dips, but where is the bottom? Who can say for sure? The article has no flaws; it just didn’t tell me when to truly buy, so I still have to judge for myself.
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ImpermanentPhobiavip
· 01-07 06:41
It's that time again when the central bank loosens monetary policy and the crypto market gets hyped. Honestly, this routine works every time. Wait, can BTC and ETH really break out with high volume this time? Feels like it's just a little short. Buying on dips sounds simple, but who really knows where the bottom is... Is SUI, BREV truly promising, or are they just another way to cut the leeks? Feeling a bit anxious. During an easing cycle, funds have to find a place to go, and the crypto market becomes an alternative. That's true, but I still want to wait and see the central bank's real actions in 1-2 weeks. When the market stabilizes, the crypto market will rise. This logic makes sense. The risk warning is very thorough, but unfortunately, few who read the article will really be cautious... Every time, it's about buying on dips, but the lowest point is always at the next low. Will this liquidity injection be even more aggressive than the last easing cycle?
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ReverseTrendSistervip
· 01-07 06:39
When the central bank moves, someone always follows suit. Will this wave really carry over to the crypto world? Basically, it's just waiting to see BTC's reaction. By the way, SUI is looking a bit promising this time. It's another dip to build positions. I think you're trying to catch the bottom again. Is liquidity flowing out? Let's first see if this time it's truly easing or just more talk. Every time there's a reduction in reserve requirements or interest rates, they say the same thing. And in the end? Eco-coins keep trading in the same old patterns, same old tricks with different names. What does a meme coin like PEPE count for? Real gold and silver are the hard truth. I agree with the idea that the market might stabilize, but I don't think it'll be that smooth. Funds looking for an exit might also be looking for a buyer to offload to. Opportunities to position? More like traps set for the chives. History is a guide; why are you still doing the opposite?
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