The Fed's move is highly significant. The New York Fed just announced the normalization of the repo tool, while also completely removing the operational cap. This is not a minor adjustment but a direct opening of the liquidity floodgates during a period of market liquidity tightness.

Why make this decision? The background is actually not complicated. Remember the event in 2019 when overnight rates soared to 10%? This time, the Federal Reserve clearly learned its lesson and decided to act early—using "unlimited supply" to close potential gaps before liquidity risks truly explode. Coupled with the impact of Trump's tariff policies on the U.S. debt market, balance sheet reduction has been forced to slow down. Removing the cap essentially injects confidence into the market.

From the perspective of the crypto market, this signal is especially noteworthy. An environment with ample liquidity usually benefits assets with higher volatility, and cryptocurrencies are obviously among this group.

The Fed's current strategy is very clear: "I may not need it, but I must have ample ammunition on hand." This marks a shift in monetary policy thinking—from passive risk management to proactive risk defense.

For investors, there are several points worth monitoring: first, whether the overnight repo rate remains stable, which directly relates to whether risk assets can continue to rise. Second, be cautious that such large-scale liquidity support could, in the long run, sustain inflationary pressures. Finally, in an environment of abundant liquidity, more attention should be paid to high-quality assets with solid fundamentals.

Is this the prelude to a new round of liquidity, or just a brief calm before a turning point? It’s worth deep reflection.