The Federal Reserve has injected 220 billion USD to stimulate the market. Will cryptocurrencies usher in new opportunities?
The latest news broke unexpectedly for many—The Federal Reserve decided to add 220 billion USD into short-term government bonds, averaging 40 billion USD per month, citing the reason that the financial system's reserve balances are nearing depletion. However, the meeting minutes reveal a more aggressive underlying intention: most decision-makers are leaning dovishly, clearly signaling a rate cut. CME data shows that the probability of holding interest rates steady in January exceeds 85%, but by March, the likelihood of a rate cut rises sharply. The door to easing policy has actually been opened.
The Fed's logic is also easy to understand. Although US economic growth remains moderate, inflation still faces upward pressure, and reserve balances are at a "just enough" critical point. Shifting to a neutral policy now can support the employment market and pave the way for more aggressive stimulus measures later. After all, black swan events like government shutdowns can happen at any time, so releasing liquidity in advance is a preventive measure.
This move has a tangible impact on the crypto market. On the regulatory front, the US government continues to closely monitor DeFi and related sectors, with legal disputes still brewing; at the same time, a mysterious transfer of 5.85 million EIGEN tokens on a certain DEX was observed, with tokens transferred out and back in, leading the market to suspect that large holders are testing market depth or engaging in short-term manipulation. Liquidity expectations are heating up, market sentiment is volatile, and opportunities and risks are advancing hand in hand.
With this combination of measures from the Federal Reserve, what’s your view? Should you take advantage of the liquidity easing window to enter, or worry that this rebound might be just a fleeting moment?
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JustHereForAirdrops
· 11h ago
Liquidity easing sounds good, but the regulatory sword is still hanging over DeFi. I have a feeling this rebound is just like paper mâché.
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NewPumpamentals
· 11h ago
220 billion is being poured in again, it's time to start harvesting the leeks, the old tricks again
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ConsensusDissenter
· 11h ago
Another round of liquidity injection, is this really different? I remain skeptical. Didn't we say the same last time?
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BearMarketBuyer
· 11h ago
220 billion really can't move much; the key is whether the coin price can hold up. It feels like this rebound is going to fizzle out again.
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WhaleWatcher
· 11h ago
Wait, with this move of 5.85 million EIGEN, are the big players really testing the depth? It seems more like they're scaring off the retail investors.
#美联储回购协议计划 $ETH $WCT $ZRX
The Federal Reserve has injected 220 billion USD to stimulate the market. Will cryptocurrencies usher in new opportunities?
The latest news broke unexpectedly for many—The Federal Reserve decided to add 220 billion USD into short-term government bonds, averaging 40 billion USD per month, citing the reason that the financial system's reserve balances are nearing depletion. However, the meeting minutes reveal a more aggressive underlying intention: most decision-makers are leaning dovishly, clearly signaling a rate cut. CME data shows that the probability of holding interest rates steady in January exceeds 85%, but by March, the likelihood of a rate cut rises sharply. The door to easing policy has actually been opened.
The Fed's logic is also easy to understand. Although US economic growth remains moderate, inflation still faces upward pressure, and reserve balances are at a "just enough" critical point. Shifting to a neutral policy now can support the employment market and pave the way for more aggressive stimulus measures later. After all, black swan events like government shutdowns can happen at any time, so releasing liquidity in advance is a preventive measure.
This move has a tangible impact on the crypto market. On the regulatory front, the US government continues to closely monitor DeFi and related sectors, with legal disputes still brewing; at the same time, a mysterious transfer of 5.85 million EIGEN tokens on a certain DEX was observed, with tokens transferred out and back in, leading the market to suspect that large holders are testing market depth or engaging in short-term manipulation. Liquidity expectations are heating up, market sentiment is volatile, and opportunities and risks are advancing hand in hand.
With this combination of measures from the Federal Reserve, what’s your view? Should you take advantage of the liquidity easing window to enter, or worry that this rebound might be just a fleeting moment?