The U.S. Treasury market is making big waves! The Federal Reserve is no longer pretending and has started buying $40 billion in U.S. Treasuries every month. Why the urgency? It turns out that Japan, once the major "big creditor," is no longer on board.

The scale of U.S. Treasuries has soared, from less than $5 trillion in 1995 to a staggering $38 trillion by 2025, with the doubling speed increasing rapidly. Now, with expectations of problems in U.S. Treasuries, the U.S. government is hesitant to speak out, yet the market has already shown its attitude through actions. $SOL $BNB $ETH

Previously, Japan and China were major buyers of U.S. Treasuries. As China does not renew its bonds at maturity and Japan faces significant issues in its own bond market, they must raise interest rates to stabilize the situation, forcing institutions to sell U.S. Treasuries for liquidity, leaving them with no extra funds to buy more. If the Federal Reserve does not intervene, Treasury yields will rise, causing a market uproar. Therefore, since September 2024, the Federal Reserve has cut interest rates six times, yet Treasury yields have still risen, creating immense pressure.

$40 billion a month amounts to $500 billion a year, which is no small scale and can help lower market interest rates. However, the problems in the U.S. financial system are escalating, and other buyers may follow Japan's lead, forcing the Federal Reserve to increase its purchases. While it is currently suggested that it may drop to $20 billion, the market is ruthless, and the future is full of uncertainties. What impact will this wave of operations have on the cryptocurrency market? We shall see!