The Fed has hit the brakes this time - the balance sheet reduction plan that has lasted for several years has suddenly been halted. What does this mean? It means that the crazy recovery of money from the market is no longer happening. Why? The U.S. economy can't take it anymore. The money in the banking system is running low, the interest on government bonds is frighteningly high, and the cost of borrowing for the Treasury has skyrocketed, forcing the Fed to compromise.

What does this mean for the market? In the short term, it is definitely a signal. Liquidity is no longer tightly constrained, and the flow of money will be smoother. The crypto market is most sensitive to such changes and is likely to move first, potentially ushering in a rebound.

But don't be too happy too soon. The Fed's asset portfolio is still at a high level, and now the release of economic data is being delayed, making the market walk with its eyes covered, and volatility is likely to be even more severe. More importantly — this could be a precursor to a rate cut cycle. Historical experience tells us that high-risk assets like cryptocurrency often sense a policy shift in advance. How the market moves in the next month or two will be crucial.