2026-01-03 18:23:05

The Federal Reserve's recent overnight repurchase operations have attracted widespread market attention. This is the first large-scale operation since 2020, with $31.5 billion injected a few days ago and an additional $19.5 billion added this week, revealing the market's liquidity predicament through a dual approach. For participants in the crypto market, this signal warrants careful interpretation.

Why did the Federal Reserve suddenly take such action? There is a complete logical framework behind it. Over the past two years, the Fed has been implementing quantitative tightening policies to combat inflation—essentially pulling liquidity out of the market. This policy has led to a significant decline in excess reserves in the banking system, and the "available cash" in the market has been decreasing.

The problem emerged at the end of the year. Banking institutions began hoarding cash to optimize their balance sheets for 2026, further exacerbating market liquidity tensions, causing overnight borrowing rates to soar. Pure market supply and demand could no longer balance, forcing the Fed to intervene.

This scenario is reminiscent of a reference case in the crypto circle—the 2019 repo crisis. At that time, liquidity exhaustion directly froze the market and nearly triggered systemic risk. The Fed's swift response this time is essentially to prevent history from repeating itself.

From a deeper perspective, this is not just a "rescue" operation. It indicates that the quantitative tightening policy has reached a ceiling. Continuing to withdraw liquidity would directly threaten the stability of the entire credit system. Therefore, a reasonable inference is that quantitative tightening is likely to slow down, and there may even be broader policy adjustments. This represents a forced shift in the Fed's direction, and the market should closely monitor subsequent policy signals.

For crypto assets, changes in liquidity environments often mean a reassessment of risk asset pricing. When central banks release liquidity, it usually supports the prices of risk assets. Conversely, the opposite is true. The current policy shift warrants ongoing attention.

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VibesOverCharts

· 01-06 12:03

510 big players are in, how dare you still say "emergency"? This is the printing press about to fire up again. Wait, we all survived the 2019 wave, is this time really different? Feels like the same old tricks... Powell's hand was played a bit hastily, indicating that the bottom line is really about to be exposed. Liquidity loosening, is BTC about to take off again? I know this logic well haha. The Fed changed its tune, just changed its tune, don't bother with the "ceiling" rhetoric, honestly, there's no way out. Quantitative tightening was only implemented for a short time before collapsing, it feels like central banks are just acting. This move is essentially a disguised way of telling us that risk assets need to be revalued, understand?

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FadCatcher

· 01-05 15:28

$51 billion injection still needs emergency rescue, how tense does that make it? The tightening policy ceiling is approaching, and a loosening cycle might really be coming. Basically, the Federal Reserve has chickened out; liquidity exhaustion is more frightening than fighting inflation. Is the nightmare of 2019 about to replay? But this time, the response is much faster. I just want to know if Bitcoin will benefit from this wave of liquidity dividends. Banks hoarding cash, and the Federal Reserve has to obediently open the purse; that logic is spot on. The ceiling is broken, and there's a high probability that liquidity will be released afterward. Will crypto take off? Policy is reversing; it’s been obvious for a while, and now the action is a bit late. Isn’t this just a strong boost for risk assets? Looking forward to what’s next.

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NFTregretter

· 01-04 10:40

51 billion and 51 billion... Now Powell is really panicking, quantitative tightening can't go on anymore --- That 2019 scare made me hesitant to move anything, but this time feels a bit different --- Oh my God, banks are still calculating their balance sheets at the end of the year, is this the root cause of liquidity exhaustion? Kinda ridiculous --- Wait, does this mean Bitcoin is about to take off? Releasing liquidity would mean buying risk assets, right? --- Policy shift, shift, shift—every time I hear this, but in the end? It still depends on actual implementation --- Last year’s tightening was so aggressive, and now they’re easing again. The Fed is really messing with us --- Dropping 51 billion directly exposed how fragile the market is—this is so embarrassing --- Crypto market participants should be alert; liquidity changes are extremely sensitive

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NFTRegretDiary

· 01-03 18:53

Wow, $51 billion poured in directly. This is really almost unbearable. This time it's a real shift. BTC needs to take off. Liquidity easing makes it hard not to speculate. That near collapse in 2019, and now it's happening again? The Federal Reserve's move is indeed a bit panicked. The quantitative tightening ceiling has shattered; the subsequent policy signals are the real highlight. Now central bank rescue measures have become the norm, and our chips are worth more again.

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LeverageAddict

· 01-03 18:51

$51 billion worth of investment, even the Hawks have to bow. Liquidity is life. --- The 2019 buyback crisis is still vivid in memory. This time, the Federal Reserve learned to be smart and acted early. We are fortunate. --- Wait, is the quantitative tightening ceiling reached? Shouldn't the coin price rebound... we need to watch the Fed's next move. --- At the end of the year, banks are hoarding cash to optimize reports, which is really competitive. As a result, it directly made the market nervous. --- Basically, it's still a liquidity game. When money is poured into risk assets, they rise; without money, the market dies. Simple and brutal. --- From 2020 to now, we haven't done this in four years. This time, it's really urgent, the signals are very clear. --- $315+195 billion is like applying a patch. The question is, how long can the patch last? They will probably keep easing later.

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ShitcoinArbitrageur

· 01-03 18:49

$51 billion poured in, a liquidity crisis is coming. This time, the Federal Reserve has finally chickened out. --- Wait, banks are starting to hoard cash at the end of the year? Isn't that a subtle hint that money is coming? --- I still remember the repo crisis of 2019. It was terrifying. Please don't let it happen again this time. --- So, quantitative tightening is no longer sustainable. Next, it's about easing liquidity, which is definitely good news for us. --- When liquidity loosens, risk assets take off. What are you waiting for to jump on board? --- The Fed's move is just to rescue the market. The market is really on the brink of collapse, which is why they’re doing this. --- Central bank releasing liquidity = crypto prices will rise. The logic is simple; it all depends on how they follow up. --- What does the surge in overnight lending rates indicate? It means there's no money left. Just topping up now. --- The ceiling for quantitative tightening has been reached. The next step is to reverse course. This is a turning point. --- $51 billion is probably just the appetizer. It seems more will come later. Let's wait and see.

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StablecoinSkeptic

· 01-03 18:46

510 billion investment still can't cure the root problem, this is probably the end of tightening policies. --- Damn, I didn't expect banks to stockpile cash at the end of the year, no wonder they're so anxious. --- If that wave of buybacks in 2019 really happens again, I'll go all-in on short positions. --- Talking about easing the tightening, I think it's just a policy u-turn; liquidity is about to explode. --- Wait, what does this mean? Is BTC going to rise or is the crypto market going to cool down? I'm a bit confused. --- The Federal Reserve's move is actually digging a hole for itself; it's becoming harder to back out. --- The signal of liquidity shifting definitely needs to be watched, but don't be fooled; it may not be friendly to crypto. --- Haha, another round of central bank intervention. Will crypto folks finally breathe a sigh of relief this time?

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consensus_failure

· 01-03 18:40

510 billion poured in, the Federal Reserve is really panicking now Speaking of the repurchase crisis, we've seen this before, history really does repeat itself Liquidity loosening, BTC has to rise, this logic makes sense QT can't hold up? What about later, there might even be surprises Banks hoarding cash to optimize reports, honestly, it means they have no money left That wave in 2019 is still vivid, this time the response was quick, at least we're not just bystanders Revaluation of risk asset pricing, should we get on board now? Central banks pump money, retail investors are numb, institutions care, let's see who acts fast

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RooftopReserver

· 01-03 18:38

$51 billion poured in, and the Federal Reserve's move this time is really panicking. Wait, does this mean easing is coming back? Then our coins should go up, right? I missed the wave in 2019, but I heard about how intense it was, and it was really scary. Stopping the bleeding in time this round was smart. Basically, liquidity has bottomed out, and the central bank has been forced to act. A policy shift is a certainty. Now it's the turn for risk assets to perform. Let's wait and see.

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AlphaWhisperer

· 01-03 18:27

$51 billion poured in, the Federal Reserve is scared now, the quantitative tightening ceiling has shattered Wait, easing liquidity = rising coin prices? Why do I feel it's not that simple I remember the 2019 wave almost caused a system collapse, this time is way more intense than back then No, the central bank's rescue has run out of cash, this script is a bit surreal It sounds like policy direction is about to change, but it's hard to say exactly when there will be real easing So, what does this mean now? Should we start bottom fishing or keep observing? The ceiling has shattered, is it time to expect interest rate cuts next? $51 billion is just the appetizer, I bet they will keep pouring in later The liquidity crisis defense line is so fragile, no wonder the crypto community is freaking out The Fed was forced to turn around, this is the real negative signal turning positive

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