Hello everyone, today I want to talk about a huge wind direction that almost everyone has overlooked - the Federal Reserve suddenly stopped the "balance sheet reduction"! You might wonder, what does this have to do with us in the crypto space? Actually, it has a big relation.

First of all, what is "balance sheet reduction"? Simply put, it is the Federal Reserve continuously "withdrawing" dollars from the market every year, reducing liquidity. But recently, the Federal Reserve quietly stopped this operation. After the halt, the liquidity pool in the market started to become tight, and interest rates occasionally spiked, just like in DeFi when the liquidity pool is almost exhausted, the slippage suddenly becomes outrageous.

You have to understand that stopping the "balance sheet reduction" actually means that market liquidity is about to be injected again! Wall Street has already started spreading the word: next, the Federal Reserve may start "balance sheet expansion," buying between 35 billion to 45 billion US dollars of government bonds each month, expected to start in January next year. This is equivalent to turning on a giant "stablecoin printing machine," injecting a large amount of funds back into the market.

So, what does this mean for the crypto space? You may have already noticed that Bitcoin has returned to over 90,000, and various crypto concept stocks have also started to rise. At this time, smart money has already started to move, and the market is voting with real money.

However, everyone should also remember that behind the easing of monetary policy, there is always a bigger risk hidden. Once this "water" flows out, the first to rise will be Bitcoin, a globally recognized digital asset, followed by US stocks and emerging markets, which will also rise with the tide. But the more water released, the greater the potential asset bubble and wealth harvesting that may await us later. So, the key is not how you swim in the flood, but how to steady your boat before the gate releases the water.

Remember, ordinary people are watching interest rate hikes and cuts every day, but smart people have long focused on the Federal Reserve's balance sheet, paying attention to the flow of funds behind it. The transfer of wealth is never explicitly stated in news headlines, but is hidden in those invisible flows of funds. $ETH #美联储FOMC会议 $BTC #美SEC推动加密创新监管