The Federal Reserve has ended QT, and prior to this, Federal Reserve officials released strong signals that the expansion of the balance sheet is not far off. Some institutions predict that the Federal Reserve may announce the active management of reserve purchases (RMP) at the interest rate meeting next week, buying approximately $20 billion in short-term U.S. Treasury bonds each month. The key point is that the Federal Reserve has made this move; the funds injected in early December are the largest scale of liquidity since the pandemic began in 2020. Once it starts, it won't stop. It's just like cutting and raising interest rates.
Since October 11, the market seems to have been pressed down and rubbed against the ground; for twenty-nine days in a month, there has been fear and extreme fear. This kind of span is rare throughout history. Many people think fear is a bad thing; in fact, looking at it the other way around, what does prolonged fear mean? It means that the main players are grinding down the retail investors' emotions to the thinnest point, to the point of questioning life, to the point where you don't even dare to believe in a rebound. Fear is not the end; it is the accelerated redistribution of chips. This time, the panic is evidently greater than the previous two times when Bitcoin corrected by 30%. The washout lasted longer, the fear was longer, and what followed was an even more violent eruption.
