2025-12-31 06:27:48

The market always bottoms out in fear and reverses in euphoria.

Last night, a message exploded in major crypto communities: the Federal Reserve has injected funds again. Watching some start to hype a bull market, but calmly thinking—are these $6.8 billion really a gift to the crypto market? To be honest, overthinking it.

What is the essence of this money? It’s just the Fed’s year-end "revolving fund." To give financial institutions comfortable liquidity for the holidays. The specific operation is achieved through repurchase agreements, where financial institutions pledge government bonds to exchange for cash, which they must repay in a day or two. This is not quantitative easing, not money printing, and certainly not a sign of a policy reversal.

However, ETH is now at a critical level of $3,050, staging a battle between bulls and bears. The outcome of this fight will directly determine how the year-end market concludes.

**The Logic Behind Liquidity Operations**

Over the past ten days, the Fed has injected approximately $38 billion. At first glance, that seems like a big move. But in reality, this is the standard routine for year-end liquidity management. To draw an analogy: you need to pay off your credit card at year-end, temporarily pledge your phone to a friend for some cash, then buy it back after your paycheck arrives—that’s it.

Honestly, this operation does have some influence on market sentiment. When dollar liquidity expectations improve, risk assets often get short-term support. Historical data from the crypto market also confirms this—excess liquidity tends to flow into higher-risk asset pools.

But don’t get too excited too early. In the face of the enormous size of the global financial market, this $6.8 billion has limited energy. Looking at this alone, it’s unlikely to sustain independent support for crypto asset prices. What’s truly worth paying attention to is the broader macro background: if we interpret this as part of the roughly $38 billion liquidity operations over the past ten days, then the signal becomes interesting.

ETH0.44%

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SmartContractWorker

· 7h ago

Is this another routine? The Federal Reserve releases some pocket change and the crypto circle starts dreaming, hilarious Wait, can ETH hold at 3050? That's the real key Temporarily mortgaging your phone to get money, what a metaphor, haha Sounds impressive, but look closely and it's just that 6.8 billion is a drop in the global financial market, don't overthink it everyone How long can this liquidity support last at the end of the year? I can't bet on it It's really just a drop in the bucket, wake up brothers

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DefiPlaybook

· 7h ago

This round is just about grabbing some free rewards; the real money depends on the macroeconomic environment.

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WhaleSurfer

· 7h ago

Here comes another wave of retail investors getting caught, the Federal Reserve has been playing this game for decades. Now just wait and see who gets trapped at 3050. Always remember one thing: when good news is exhausted, it becomes bad news. Experienced traders don't pay attention to these news factors; they look at whether the market bloodbath continues or not. 68 billion is just a small amount; no matter how much you boast, it can't change the overall trend.

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MetaNeighbor

· 7h ago

Basically, it's about working capital, not printing money. Don't get caught up in the hype. --- Can ETH break through 3050 this time? That's the real highlight at the end of the year. --- Liquidity flows in and out, overthinking it is really unnecessary. --- Here comes another round of the "Federal Reserve saving the market" story. Why do so many still believe it? --- 68 billion in the entire market is just a drop in the bucket. Don't overinterpret it. --- Year-end rotation strategies are played every year. The crypto circle treats it as big news every time. It's hilarious. --- Watch how ETH performs; that's the key. Everything else is just noise. --- Extra liquidity flowing into risk assets is a given, but the volume isn't enough yet. --- Is the bull market coming? Wake up, they're just borrowing money to go on vacation for the New Year. --- Really, stop thinking macro signals can save your coins. You need to look at your technical analysis.

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CoinBasedThinking

· 7h ago

Hi there, another wave of retail investors' surprises. Thought the Federal Reserve was really giving us money, but it turns out to be just routine year-end procedures. Wake up, everyone. ETH at the 3050 level really needs attention; this move is truly critical. But I don't expect any sudden mutations either. As I always say—liquidity improvement is a short-term positive, but don't expect it to change the overall situation. It's just another show of bulls and bears. Let's accept it at the end of the year, whether it falls or rises. In fact, it's just an excuse. Every time there's a new explanation for the price, it's annoying. Over the past ten days, 38 billion sounds like a lot, but looking at the global financial scene, it's not a big deal. Let's not overthink it. Hmm... here we go again with the new round of "this time is different." I bet fifty cents this wave of sentiment will dissipate in a couple of days. Honestly, the market just eats this up. When liquidity improves a bit, it immediately surges. I’ve memorized this rhythm.

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ApeWithNoFear

· 7h ago

Wake up, don't be fooled by 6.8 billion, it's just year-end working capital. ETH 3050 is the final showdown of the year, expecting a bearish wave. Here comes another round of leek farmers being cut, the rhythm is really top-notch. Liquidity flows in and out again, it's just short-term sentiment, don't take it seriously. At 3050, bulls and bears can really show their skills; the year's market depends on this battle. Honestly, I don't even believe it anymore, pouring funds to hype the bull market, is that all there is to the crypto game? 380 billion is not enough compared to the global financial scale, still trying to pump the market? Think again, brother. Year-end money is borrowed and needs to be repaid, the real signals haven't even come yet.

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LightningHarvester

· 7h ago

Wake up, it's the same old trick of revolving funds. Don't get cut again. Are we talking about another bull market? I just smile; this money needs to be repaid in two days. For ETH to hold at 3050 is the real deal; otherwise, the year-end will be a waste. 380 billion sounds like a lot, but in the global financial context, it's just a drop in the bucket. Don't scare yourself. Liquidity coming in is easy, flowing into the crypto market is easy, but don't forget the outflow is even faster. It's always the same, one piece of news starts the dream, have you woken up yet? The key still depends on this ETH battle; everything else is nonsense. Still thinking about bottom fishing at the end of the year? The market rules, not the Federal Reserve.

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