The recent market fluctuations have been quite interesting. The Federal Reserve just injected $16 billion to support banking liquidity, marking the second time since the pandemic that such a large-scale emergency operation has been carried out. It’s important to note that the entire system’s reserves are already under tight pressure.

Meanwhile, the crypto market’s movements are perplexing: Bitcoin surged to $90,000 and then pulled back, while Ethereum also fluctuated. On the surface, these seem like two independent markets, but upon closer inspection, the phenomena on both sides actually hint at the same issue — liquidity is tightening everywhere.

Traditional finance needs emergency infusions, indicating systemic stress. This kind of pressure usually triggers a chain reaction: large funds will reassess asset allocations and consider placing their money where risks are more controllable. Historical experience shows that when uncertainty in traditional markets rises, crypto markets tend to become more volatile — a reflection of liquidity re-pricing.

So, what’s the more prudent approach right now? My suggestion is to stay observant. First, see if the mainstream coins can hold key support levels, as this will determine the subsequent direction. Second, consider what impact the Federal Reserve’s big move will have — this is crucial for market turning points. Changes in the macro environment often rewrite the performance of coin prices and market sentiment.

The more uncertain the times, the more important it is to stay clear-headed. The market is about to undergo a major shift — do you feel that wind? The key is to find a reliable analytical framework and know which indicators can truly aid decision-making.