Brothers, the news is here: the Fed is going to inject 6.8 billion through a repurchase protocol at 10 PM tonight. The key point is not this time, but in the past 10 days it has already injected a total of 38 billion - it’s said to be "year-end liquidity management", but those experienced in the crypto world understand that no matter how this money comes, it sounds like favourable information.


Why do it now? It's the end of the year, and institutional demand is high, making liquidity prone to tightness. The Fed is doing this to prevent an unexpected collapse in the market due to a "money shortage."
What impact does this have on the crypto world? Although this liquidity mainly flows into the traditional financial system, the expectations of liquidity will spread. With more coins available and lower financing costs, some funds may flow into the crypto market, making the market likely interpret it as "potentially favourable information."
Summary: The Fed's recent actions can be understood as "injecting liquidity into the market," rather than serving steak. It can support the market, but it's not enough to trigger a bull market. Smart money will take advantage of emotional fluctuations to make moves, rather than blindly chasing prices.
View Original
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
  • Reward
  • Comment
  • Repost
  • Share
Comment
0/400
No comments
  • Pin

Trade Crypto Anywhere Anytime
qrCode
Scan to download Gate App
Community
  • 简体中文
  • English
  • Tiếng Việt
  • 繁體中文
  • Español
  • Русский
  • Français (Afrique)
  • Português (Portugal)
  • Bahasa Indonesia
  • 日本語
  • بالعربية
  • Українська
  • Português (Brasil)