This time, the Federal Reserve is indeed easing, and the actions are more urgent and obvious than everyone expected.
What Coinbase Institutional said in the chart is correct. On the surface, a 25 basis point rate cut is a routine matter; the market is already numb, and it hardly counts as news. The real medicine is hidden behind: in the next 30 days, they will directly buy $40 billion of short-term government bonds.
What does this mean? It's like the Federal Reserve is flying a helicopter, directly dispersing money into the U.S. banking system, increasing the base currency. They don't call it quantitative easing, but their actions are very honest; what they're doing is essentially the early stages of QE, injecting short-term liquidity directly into the market. That's why it's called invisible QE or mild QE in the circle, which is very fitting.
My personal view and sentiment are: in the short term, we must be bullish, but we must stay clear-headed and not get overly excited.
In the crypto space, especially Bitcoin, half of its attributes are now global liquidity indicators. With more water, there will naturally be upward pressure on the water level in the pool. This 40 billion is just the beginning, and as mentioned in the chart, this reserve growth may continue until April next year. This means that in the coming months, the market will consistently have expectations of the Federal Reserve quietly sending money behind the scenes. This psychological impact will last much longer than simply reducing interest rates once or twice. Therefore, the policy environment has indeed become friendlier, providing a cushion for potential rebounds or upward fluctuations that may occur next.
The market's appetite has become picky. The last round of the bull market was fed by the Federal Reserve's flood of money. Now, this mild QE has been reduced by several levels. Want to replicate the frenzied trend of 2021? The likelihood is extremely low. Its greater role is to support and maintain momentum, rather than to ignite a bull market.
The pitfall of over-optimism is right in front of us. The news of this invisible QE has already been digested since last night. If you chase it after seeing the news, you may very well catch the short-term peak. The real driving force will require us to see sustained inflow data and whether the market can effectively break through key resistance levels, such as the BTC zone of 94500-95000.
This operation by the Federal Reserve confirms a policy turning point, shifting from tightening to easing, which is a genuine mid-term benefit for the crypto space, giving us peace of mind. Emotionally, we can be a bit optimistic. However, it is by no means a clarion call for overnight wealth.
The next strategy should be: to use the safety margin provided by this positive environment to look for and wait for better buying opportunities, rather than blindly chasing highs. The market will repeatedly test to confirm how solid this policy floor is. We need to be a bit patient.
After all, a bull market isn't created by one or two policy announcements; it is built with real money. Now, the money-sending truck has set off, and we need to see which path it takes and when it arrives.
This money-sending truck has already started, but do you know its exact arrival time and unloading location? The specific boarding and alighting positions and rhythm have been made public in the chat room below.
