There is a major news in the market recently—The Federal Reserve has just completed the largest single liquidity injection since the COVID-19 pandemic in 2020, amounting to $105 billion. This is not just a cold, hard number but a strong policy signal indicating that a liquidity tsunami is being triggered at the source of the financial system.

Why is this so important? Look, this scale is comparable to pandemic-level interventions. The Fed is clearly communicating through action: preventing market tightening and supporting the economy are top priorities right now.

How will this money flow? Usually like this: the banking system absorbs liquidity, then it flows into the government bond market, and finally into various risk assets—stocks, tech stocks, and of course cryptocurrencies. Money always flows toward the highest returns.

What does this mean for the crypto market? First, the market’s biggest fear—the concern over liquidity drying up—has been temporarily alleviated. Second, with the influx of cheap funds, risk appetite will rebound, and high-risk, high-volatility assets like Bitcoin are often the first to be favored. Additionally, against the long-term backdrop of "money printing-inflation," Bitcoin’s narrative as a scarce asset will be further reinforced, becoming a tool to hedge against inflation.

More importantly, this is not just short-term good news. It lays a solid foundation for market sentiment in the coming months. The truly smart money now cares less about "will it rise" and more about "how much will it rise" and "which sector will rise the fastest." History repeatedly proves that a clear shift in liquidity environment often marks the beginning of a new round of asset revaluation. This time will be no exception.