The Federal Reserve has launched another major move. Starting today, it will directly purchase $40 billion worth of government bonds each month. Coupled with six consecutive rate cuts, this combination has completely opened the floodgates for liquidity.

At first glance, this looks like a textbook example of quantitative easing. It’s not just about manipulating numbers but actually pouring real money into the financial system. Buying government bonds, lowering interest rates, encouraging banks to lend, stimulating investment—the logical chain is clear, all aimed at preventing a recession and stabilizing employment.

Why is this so critical? The numbers speak for themselves: a stable monthly inflow of $40 billion is like giving the entire market a strong boost. Plus, with the rate cuts, the cost of funds drops sharply, giving banks, institutions, and retail investors cheaper borrowing opportunities.

Historically, each time a quantitative easing cycle is launched, various assets tend to rise in response. Stocks, bonds, precious metals, and even higher-risk assets like cryptocurrencies all have a chance to benefit from this liquidity bonanza. Especially under the backdrop of rate cuts and increased liquidity, risk assets like Bitcoin and Ethereum are getting a double boost. Easy money, cheap borrowing, and increased risk appetite naturally lead funds to flow toward higher-yield opportunities.

However, to be honest, such aggressive liquidity injection also brings significant risks. Will inflation re-emerge? What does the large-scale dollar supply mean for the global financial system? These are looming questions. The Fed’s stance is quite clear—job stability and preventing recession are top priorities, with other concerns taking a backseat.

The current situation is: the policy toolbox is wide open, and market logic is holding up. Stocks, commodities, cryptocurrencies—all sectors are trying to find their rhythm. How do you see this opportunity—are there risks, or is it a chance for gains?