Breaking news just out: the Federal Reserve has injected $16 billion into the banking system. This number looks large, but what’s more noteworthy is that this is the second-largest single injection post-pandemic.

Looking at the historical data of overnight repurchase operations, this move is indeed significant. The Fed’s logic is straightforward—end-of-year liquidity pressures, structural gaps in the market, so they proactively release liquidity to stabilize expectations.

What does this mean for the cryptocurrency market? It depends on two dimensions. First is the short-term liquidity environment. More money means more splash in risk asset pools. Recently mispriced tokens may see a rebound opportunity, and the market can catch its breath. Second is the signaling aspect. This move by the Fed indicates that policymakers are continuously monitoring market pulse, and their toolkit remains active.

But there’s an easy trap to fall into—don’t interpret this injection as a signal of full easing. It’s essentially targeted operations addressing liquidity gaps, not a open-door “floodgates” approach. So, from a strategic perspective, what should be done?

For those already deeply trapped, cutting losses now isn’t very meaningful; better to wait for a rebound. Those with remaining funds can consider gradually building positions in promising assets, but never leverage, and keep some flexibility in overall position size. This is a moment for precise, tactical moves rather than all-in bets.

The most critical information behind this injection isn’t the amount itself, but the flexibility of policy and market attention. Will there be continuous actions afterward? It’s worth ongoing observation. The driving force behind the crypto market often comes from marginal changes in macro liquidity, and that change is happening. Stay in sync with the rhythm, spot opportunities, avoid chasing highs, and prioritize stability.