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The New Year holiday just passed, and the Federal Reserve made a big move early this morning—an injection of $74.6 billion in liquidity, the largest scale since the pandemic began. As soon as the news broke, the trading groups exploded—some directly exclaimed "Bitcoin surging to $200,000," while others nervously asked "Is this a trap set by the big players?"
But don’t rush to judgment; we need to understand what’s really going on. So-called liquidity injection, simply put, is the central bank "transfusing blood" into the banking system to ensure ample market liquidity. You can think of it like relatives giving red envelopes during the New Year—when people have more cash on hand, they naturally consider investing. Due to the high risk and high return characteristics, the crypto market has always been a hot destination for funds, with Bitcoin, MEME coins, and similar assets being the first choices.
However, there’s an important point that cannot be overlooked: don’t be fooled by the label "the largest scale since COVID-19." This round of liquidity infusion isn’t as simple as it seems. From the Federal Reserve’s operational logic, the banking system tends to experience liquidity tightness at the end of the year. The $74.6 billion injection is essentially an "emergency measure" rather than a "massive flood." The core purpose is clear—stabilize the financial system and prevent economic risks from spreading.
Looking at historical data, you’ll see the difference. The liquidity injections during the pandemic in 2020 were comprehensive and continuous, covering monetary policy, fiscal support, and more, with a scale and duration far exceeding this time. In comparison, the current operation is more like "targeted drip irrigation"—aimed at addressing the liquidity gap at year-end. The intensity and scope are simply not in the same league.
Therefore, investors need to remain rational. This liquidity injection will indeed improve the market’s cash flow, but don’t expect it to be a savior for the crypto market. The real opportunity lies in understanding the economic cycle logic behind the policies and capturing genuine value amid market sentiment fluctuations. As for concerns about "诱多陷阱" (trap to induce buying), rather than fixating on that, it’s better to focus on risk management and position planning.