The Federal Reserve injected $6.8 billion in liquidity yesterday, and over ten days, it has accumulated to $38 billion. But where exactly has this money gone? It's truly puzzling.
Take the Bitcoin spot ETF as an example; there have been net inflows for four out of ten days. Even on the days when there were outflows, the daily amount didn't exceed $500 million. Even if we account for all outflows from Ethereum and other ETFs, it totals around $1 billion a day, leading to a liquidity gap of $10 billion over ten days. The remaining $28 billion has entered the market, yet there hasn't even been a ripple; something feels off about this.
Are they setting a trap, waiting for retail investors to jump in and take the bait? Or are they playing it cool, barely keeping the market afloat with this liquidity to prevent a direct crash? Everyone is anxious.
It's said that there is significant selling pressure now, but is there really that much capital being dumped? Since Bitcoin dropped on November 21st, it has been stuck in a sideways trend. Ideally, with this much liquidity coming in, Bitcoin should be the primary reservoir, but it can't even hold the $90,000 mark now.
Ultimately, this is definitely part of a bigger strategy. In these volatile times, the bear and bull voices clash, but this is the market — if everyone is set on one direction, then in the end, everyone gets burned. The process of waiting for the market to turn can indeed be tough, but if you can be patient, new upward trends will eventually come.
