Recently, the Federal Reserve has once again taken action—injecting 26 billion USD of short-term liquidity into the market. But don’t be fooled by the surface-level "liquidity injection." It may look like good news, but in reality, it’s an emergency measure to support an overstrained system.

Simply put, the true purpose of this move by the Fed is to stabilize the situation. On the surface, it alleviates short-term funding pressures and allows interbank markets to breathe a little easier, but it doesn’t change one fundamental fact—interest rates remain high. Many see the liquidity injection and think a bull market is coming; that mindset needs to change. This is a rescue shot, not a stimulant. It’s a passive response rather than proactive easing.

So, what are the smart money watching now? The real signals aren’t in the press releases but in these details: changes in overnight reverse repurchase data, whether bank reserves are truly sufficient, and the actual pressure in buying and selling in the government bond market. These are more truthful than any official statement.

The key question is: how long will this move be effective? The root problems of the engine haven’t been solved yet. In the coming weeks, we may face several unavoidable issues: how long the high-interest-rate environment will last, whether economic data is truly stable, and when smaller altcoin sectors will genuinely become active. Volatility could reverse at any moment, so don’t let your guard down.

From a trading perspective, the most important thing is not to follow the crowd blindly. Seeing the words "liquidity injection" and rushing to buy high is a common trap for retail investors. A more practical approach is to continuously monitor actual interest rate trends and liquidity gaps, as these indicators reveal more than market sentiment.

Overall, the most testing period for a turnaround is patience. Blind optimism and chasing gains are equally dangerous. Finding the right timing is much more important than betting on the right direction.