Recently, the Federal Reserve's overnight reverse repurchase agreement scale has continued to shrink, down to $435 billion, a 38% decrease from the beginning of the year. What does this number reflect? In simple terms, liquidity in the traditional financial markets is flowing back into other asset classes. The impact on the crypto market is worth pondering.

Let's first look at the performance of Bitcoin and Ethereum. BTC is currently around $94,103, and its attributes as digital gold are becoming more evident. Relaxation of macro liquidity often pushes its price higher. Meanwhile, ETH is near $3,240, with its staking mechanism and DeFi ecosystem gaining attractiveness—when traditional financial yields no longer appeal, Ethereum's staking rewards have indeed become a new capital choice.

Platform tokens and performance chains should not be overlooked. BNB is currently at $913, supported by the continuous empowerment of its ecosystem applications; SOL is at $137.8, with sustained on-chain activity making it a focus in the high-performance track. If liquidity conditions continue to loosen, these tokens are likely to experience a rebound—this is a common phenomenon in rotation.

But here’s an important note. The Federal Reserve's policies are not fixed; uncertainties still exist. Historical experience shows that markets driven by liquidity tend to be more volatile, with returns and risks often paired. It is recommended to adopt a phased approach to deployment, avoid all-in positions, and ensure proper take-profit and stop-loss measures. Market opportunities are always present, but staying alive and exiting at the right time is equally important.