Don’t just focus on those minor Fed rate cut moves—the Fed has just quietly done something big: as it ends quantitative tightening, it’s simultaneously launching a Reserve Management Purchase Program. Every month, it’s pouring $35 billion into Treasury bills—over $400 billion a year. This money won’t just sit in the accounts; it will look for an outlet. And the crypto market? It might be the most obvious reservoir.

The situation is a bit delicate right now. Bank reserves are running low, and the secured overnight financing rate has reached its upper limit, indicating that the traditional financial system’s capacity is stretched to the max. History tells us that whenever the Fed expands its balance sheet, global capital starts to stir. But this time is different—such a massive liquidity injection, and whatever the traditional markets can’t absorb, where will it go?

Decentralized, highly volatile, and high-yield crypto markets are incredibly attractive to capital. Mainstream coins like Bitcoin and Ethereum may not just see simple price increases, but could trigger a chain reaction of value re-pricing. But let’s be clear: huge inflows of capital have never been gentle. It’s like a beast that tears apart market structures—opportunities multiply, but so do risks. You could be in paradise today and fall into hell tomorrow.

This round of liquidity injection is unusual—it exposes some deep cracks in the economic system. Confidence in the traditional system is wavering, and crypto is becoming the new safe haven. But the market is a battlefield; blindly following the crowd during major volatility is just asking to be slaughtered. You need the ability to see the undercurrents of capital flows, not just stare at candlestick charts. Professional players study macro logic—retail investors just look at price fluctuations.

In the flood of finance, smart people build their boats in advance, while fools only pray for calm seas. No one can escape this storm, but those who grip the oars tightly have a chance to ride the waves.