Wall Street has been tumultuous lately - several banks have issued warnings that the U.S. money market may face liquidity tightness again. In plain terms: there isn't enough money in the market, and short-term interest rates could rise at any moment.

In this case, the Federal Reserve will most likely be forced to take action. How to save it? It’s nothing but the old three methods: repo operations, purchasing government bonds, or even cutting interest rates. Ultimately, it still comes down to injecting money into the market. The more critical issue is that the current issuance of U.S. Treasury bonds is too large, and private funds simply cannot absorb it, which means that in the end, it is likely that the central bank will have to foot the bill itself.

This could be an opportunity for the crypto market. Historical experience tells us that whenever the traditional financial system starts to "release water", the extra funds always need a place to go. Assets like Bitcoin and Ethereum often become the reservoir for these funds. The market trend after the pandemic in 2020 was largely driven by the flood of liquidity.

However, be careful in the short term. Changes in policy expectations can easily trigger severe market fluctuations, and chasing highs is very dangerous.

Here are a few operational ideas for your reference:

**Build positions in batches during pullbacks**. If news triggers a panic sell-off, don’t rush to run away; instead, consider buying Bitcoin or ETH on dips. Buy in batches to lower costs.

**Focus on the DeFi ecosystem**. Liquidity improvement usually leads to a strong performance in the decentralized finance sector, and you can make small positions in some fundamentally solid DeFi projects.

**Keep enough liquidity**. Never operate with a full position, always retain 30% cash. Wait until the trend is truly clear before increasing your position, it's not too late.

Market opportunities are always abundant, but those who survive until the end are the ones who understand how to manage risks.