Have you all noticed that banks have recently started to scramble for cash?

The latest data shows that Bank of America borrowed $26 billion through the Federal Reserve's emergency lending facility on Monday, marking the second-highest single-day borrowing since the 2020 crisis. Simply put, short-term funding among financial institutions is becoming tight, and financing costs are quietly rising.

What potential impacts could this have on the crypto market?

From a short-term sentiment perspective, the market may come under pressure. When liquidity tightens, risk assets often bear the brunt, and cryptocurrencies are not entirely immune to volatility, especially with high leverage positions requiring caution.

The mid-term direction still depends on the Federal Reserve's response. If the funding tightness persists, it may prompt the Fed to adopt more accommodative policies in the future. Once the market forms expectations of liquidity easing, assets like Bitcoin may attract more capital as a strategic choice.

Additionally, this signal could exacerbate overall market volatility. Liquidity is already relatively tight at year-end, compounded by such macro uncertainties, market sentiment may be further amplified.

What can we do?

· Understand the signals, but don’t overreact. Just pay attention to how changes in funding affect sentiment.

· Observe whether there is a divergence between U.S. stocks and cryptocurrency trends; independent movements often indicate underlying support.

· Maintain flexible positions to avoid excessive exposure to risk during times of high uncertainty.

Overall, this feels more like a stress test within the financial system, not yet constituting systemic risk, but still worth ongoing attention. We can keep observing and wait for the situation to clarify further.

(Source: Various financial media and institutional analyses, for reference only) #美联储何时降息？ $BTC $ETH