Recently, the large-scale liquidity injection by the Federal Reserve has attracted market attention. Many people see this news and want to go all-in, but the problem is—many haven't really thought through how this money will specifically flow into crypto assets.



Let's first look at the actual flow of funds. When the Fed releases liquidity, it first flows to commercial banks and primary dealers, then these institutions distribute to hedge funds, private equity, and other professional investment entities. Only after assessing the risks do these institutions consider allocating funds into risk assets like cryptocurrencies. The entire process usually takes 3 to 7 days to complete. In other words, the market is still in the early stages of capital inflow, and those rushing to buy the dip might end up踩坑.

What’s more worth paying attention to is the change in trading volume. When funds truly start entering the market, the first signal is a gradual increase in trading volume. As soon as you see a significant rise in market activity, it indicates that funds are beginning to deploy on a large scale, and the risk of jumping in at that time is much lower.

Another particularly important point: not all cryptocurrencies can benefit from this liquidity dividend. Depending on risk tolerance, capital flow will show clear differentiation. Leading projects in the DEX sector are usually most sensitive to capital inflows and can respond to market sentiment the fastest. But some smaller coins might not even get the chance for funds to come in, and could easily become the ones holding the bag.

In simple terms: there's no need to rush all-in immediately. Watch the trading volume, observe the true flow of funds, and then select the sectors and leading projects that can genuinely benefit. Only then can you seize the opportunities brought by this wave of market movement.
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ponzi_poetvip
· 01-07 00:07
It's the same old story, 3 to 7 days? Why do I feel like I'm always waiting for those 3 to 7 days?
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rug_connoisseurvip
· 01-04 19:51
Another old saying: "Watch the trading volume." Every time it's said like this, and the result? Still a bunch of people caught in a trap.
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DeadTrades_Walkingvip
· 01-04 19:49
It's that kind of feeling where you see the Federal Reserve news and want to go all-in. Really need to stay calm. This guy is right—funds move from primary dealers to institutions and then to the crypto circle, moving so slowly. It takes about a week to reach us in the middle.
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MEVSandwichvip
· 01-04 19:46
It's that old saying of "watching trading volume" again, but this time it's explained quite clearly. The capital flow indeed needs to be understood thoroughly; you can't just go all-in based on news, or you'll really become the bagholder.
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CommunityWorkervip
· 01-04 19:44
Damn, it's the same old story... But to be fair, when it comes to trading volume, there's no denying it—too many people get impulsive and go all in, only to get trapped.
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ContractExplorervip
· 01-04 19:35
In simple terms, it's not just about seeing the Federal Reserve loosen monetary policy and expecting an immediate surge; it depends on trading volume. Leading projects are the correct approach.
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