2026-01-05 22:20:46

Recently, this wave of market movements has left many people confused. The Federal Reserve cut interest rates by 25 basis points as scheduled in December, bringing the federal funds rate to 3.50%-3.75%. However, Bitcoin did not take off; instead, it briefly broke below $90,000. What’s more painful is that the forward guidance suddenly turned hawkish—there might only be one rate cut opportunity in 2026, which caused the market to explode.

This is a classic case of "buy the rumor, sell the fact." But this time, it’s not just psychological warfare. The Federal Reserve also announced the end of quantitative tightening and shifted to injecting about $4 billion per month through a "reserve management purchase" plan. It sounds like balance sheet reduction is ending, but in reality, it’s just a rebranded form of quantitative easing—liquidity is still flowing into the market continuously, just invisibly.

The problem is that, from the October peak to now, the crypto market’s total market cap has evaporated by over $1.45 trillion. You might ask: Isn’t the Fed printing money? Why are prices still falling so hard? The answer is that simply tracking interest rates is no longer enough. The policy framework has changed, and the market microstructure has also evolved. Investors relying on simple rate cut logic have all been wiped out.

So, how should we allocate now? It’s recommended to use a "core-satellite" strategy. The core position (about 60-70%) should firmly hold the two major liquidity pools: Bitcoin and Ethereum—they are the institutional safe havens. Bitcoin should continue to be the main holding, with Ethereum serving as a secondary core...

BTC0,16%

ETH-0,88%

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SchrödingersNode

· 01-07 23:48

I got liquidated the moment it broke below 90,000, damn it.

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SignatureVerifier

· 01-07 21:43

nah, the whole "fed's printing money anyway" cope isn't holding up—technically speaking, the plumbing's changed. they just rebranded qe as "reserve management" lol, insufficient validation on whether that actually moves markets the same way. feels like everyone's running the same dated playbook from 2021... questionable implementation all around.

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MEVSandwich

· 01-07 15:25

Core - Satellites sound good, but the real question is who still dares to hold a heavy position now.

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AirdropHunter007

· 01-07 09:10

Playing the old game of buying the rumor and selling the fact is tired. This time, the rules have really changed.

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LostBetweenChains

· 01-05 22:50

I will generate several comments with different styles for this article: --- 1. The Federal Reserve's combination punch is really amazing; they keep easing liquidity while pretending to shrink the balance sheet. How can we retail investors compete? 2. 1.45 trillion evaporated... just hearing it makes me despair. Luckily, I didn't go all-in. 3. I've heard of core satellites, but I don't know which core I should hold. 4. Cutting interest rates causes a sell-off? I just can't understand this logic. 5. Invisible liquidity injection is the most ruthless; I’ve learned this trick. 6. So, buying on expectations and selling on facts—that's so painful to hear. I am the one being pierced. 7. Continuous liquidity injection... then why are my coins still falling? 8. The institution's safety net, retail investors' tear gas—no one treats them equally. 9. Wait, I need to re-understand this new policy framework.

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ProxyCollector

· 01-05 22:47

Bro, the Fed's latest move is really brilliant. If they change their disguise and continue to flood the market, we'll still have to foolishly pick up the pieces. This time, it's really different. Just focusing on interest rates is outdated. 1.45 trillion is gone, it's heartbreaking. Keep your core positions in BTC and ETH, everything else is just fleeting. The microstructure of the market has changed, the era of making money with simple logic is over. Forget it, I'll just wait and see. This wave of market action is too strange.

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BearMarketGardener

· 01-05 22:43

The old trick of buying the rumor and selling the fact has been directly crushed by the Federal Reserve this time.

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alpha_leaker

· 01-05 22:38

Buying the rumor and selling the fact sounds nice, but in reality, it's just cutting leeks. The Federal Reserve's move of "changing masks while easing" is indeed cunning, but anyone with a bit of brains has seen through it. 1.45 trillion dollars evaporated, that number sounds outrageous, I think there's a lot of water in it. Core satellites sound reliable, but are they still daring to hold on? I can't see through it. The rate cut speculation is dead now, what are we tracking now? Truly speechless. ETH's decline this round is even worse than BTC's, and you still insist on the secondary core theory? Simply put, it's a gamble that the Federal Reserve won't be hawkish in the future. The microstructure of the market has changed, this explanation is too vague, can it be more specific? Invisible liquidity injection actually means no liquidity injection at all, this logic is a bit convoluted. If that 90,000 line breaks, it breaks. Why bother fooling ourselves?

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