Every month 40 billion to rescue liquidity, can Bitcoin soar?

Last night's Federal Reserve FOMC meeting's big move: not a QE flood, but an early restart of the 'RMP' plan, spending 40 billion dollars a month to buy short-term U.S. Treasury bonds, plus an additional 20 billion dollars in MBS shifting to Treasury bonds! This move hits the pain point - the overnight reverse repo pool has been close to drying up for a month, and the market's cash crunch has been torturous for two years, but now it finally gets a breather!

Since 2022, the Federal Reserve's 'brake' on balance sheet reduction has tightened liquidity like a noose around the neck. Now? Switching from 'emergency brake' to 'steady cruising,' reserve supply is stable, and banks need no longer worry about cash. Although it’s not a wild party, it is definitely a timely rain for the current 'near cash crunch' situation. The benchmark interest rate has even been conveniently lowered by 25 basis points, to 3.50%-3.75%, with the dot plot suggesting continued easing next year. The market went wild last night: U.S. Treasuries plummeted, U.S. stocks, Bitcoin, and gold all soared, and $BTC broke through instantly, with investors exclaiming 'reliving the wonderful memories of 2019'!

Why is this better than just lowering interest rates? Lowering interest rates is a temporary fix, while restarting bond purchases directly addresses the root of liquidity, which is like giving the economy a 'blood transfusion.' With three days left this week, will Wall Street make a big 'repricing'? Is it really time to say goodbye to the era of liquidity suffocation? #美联储FOMC会议 #美联储降息