Everyone, there is a piece of information worth following: the Fed is conducting a repurchase protocol at 10 PM tonight, injecting 6.8 billion into the market. But the real point to watch is not this transaction, but the cumulative total over the past ten days—380 billion has already been injected. The official name is "year-end liquidity management," but those who understand the market know that this kind of operation sounds like a favourable information signal.

Why is this being done now? As the end of the year approaches, the funding demand from major institutions surges. Once liquidity tightens, it can easily trigger market panic. The Fed's actions are essentially providing a "protective injection" to the financial system to prevent a sudden cash shortage from igniting the market.

What about the cryptocurrency market? Although this influx of funds primarily flows into the traditional financial system, the expectation of liquidity easing will gradually spread. Once there is more money, the cost of financing will naturally decrease, and a portion of the funds may seek higher returns—often, the cryptocurrency market is the first to be impacted. Therefore, the market will interpret this as a favourable information signal to some extent.

In the end, this wave of Fed's operations is like giving the market an IV drip, not serving up a steak. It can prevent a market collapse, but it is far from being able to trigger a bull market. The real smart money will make swing trades amidst emotional fluctuations, rather than following the trend and chasing prices. Mainstream cryptocurrencies like BTC, ETH, and SOL may have short-term reactions, but it depends on whether this round of liquidity truly flows into the crypto space.