The meeting at 3 a.m. has come to a conclusion.

How to put it? The Federal Reserve played a combination punch this time—first a slap, then a piece of candy.

Let’s start with the slap: rate cuts? Slightly later.
The latest dot plot is out, and the pace of rate cuts in 2026 is slower than market expectations, with more conservative adjustments. This had been foreshadowed; we predicted earlier—hoping for significant rate cuts this year? Too optimistic. In the short term, this sentiment definitely needs to be suppressed.

Now, about that candy: liquidity, here it comes.
The meeting directly announced that asset purchase plans would be launched this month to inject liquidity into the market. The timing and scale were somewhat unexpected, which counts as a solid positive. That’s why both U.S. stocks and the crypto market surged together last night.

Of course, the Fed quickly added: Don’t misunderstand, this isn’t QE (quantitative easing), it’s just to ease short-term liquidity tensions, and will be stopped at the appropriate time. In plain language—this is "quantitative supply," not "open-ended pouring."

So, overall: the meeting results aren’t bad, even somewhat "expectation management." Using "delayed rate cuts" to cool overheated sentiment, while also using "immediate liquidity injection" to support the market. The factors for optimism and caution are intertwined, but the market clearly chose to focus on the positive side first.

For us, rather than guessing back and forth, it’s better to plan ahead. Just like the previous partial long positions built in Ethereum at the 2700, 2800, 2900, 3000, and 3100 levels, based on liquidity expectations. Last night, riding this rebound, we gradually closed positions near 3300, marking the end of this round of operations.

What’s next?
There’s an old saying—"Good news fully digested becomes bad news." Once the market has fully absorbed this wave of liquidity, if there are no new catalysts, prices will naturally face a pullback. Especially since the next meeting (end of January) is unlikely to cut rates again, the market will need a new story.

In one sentence: this meeting gave a short-term candy, but also swung a medium-term stick. Our strategy is simple—eat the candy first (beneficial rebound for profit-taking), while keeping an eye on that stick (the impact of delayed rate cuts). The market can’t keep going forever; when it’s time to get off the ride and rest, don’t force it.