Calm down! The Federal Reserve has initiated liquidity support measures. On December 1, its overnight repurchase operation reached $13.5 billion, the largest since the peak of the pandemic in 2020, even surpassing levels during the 2000 internet bubble.

🔍 What is an "overnight repurchase"?

Essentially, it is a very short-term financing provided by the Federal Reserve to financial institutions. Commercial banks obtain overnight loans from the Federal Reserve using high-quality collateral such as government bonds, returning the principal and interest the next day and reclaiming the collateral. This operation provides emergency liquidity to the banking system and serves as an important tool for the Federal Reserve to adjust the scale of market funds.

📈 Positive short-term market impact

Liquidity is replenished → Bank funding pressure is relieved → Market liquidity tends to loosen → The stock market, bond market, and crypto assets may all receive support.

The Federal Reserve's actions send a clear signal: it is closely monitoring market operations and will take action to maintain stability when needed. Market sentiment is expected to gradually recover, and now may be a moment to remain rational and position for long-term value. $BTC $UNI $AR