On the night of December 1, #美联储恢复降息进程 , an easily overlooked operation may hold clues to next year's market trends — the Fed quietly initiated a $13.5 billion overnight repurchase.

What does this number mean? Looking back in history, we find that this is the largest single-day operation volume since the liquidity crisis during the pandemic in 2020, even greater than the market rescue actions during the burst of the internet bubble in 2000.

Many people are unfamiliar with the term "overnight repurchase." Essentially, it is a turnover tool for financial institutions to use government bonds as collateral to exchange for short-term cash from the central bank— it sounds very technical, but the signal it reveals is quite direct: money in the system is, in some way, starting to flow again.

How will this change in liquidity be transmitted? First, after banks have sufficient funds, credit issuance and risk appetite usually increase; second, the influx of new funds into the market often supports equity assets, fixed income products, and even crypto assets; more critically, the Fed's move is equivalent to signaling to the market: "We are monitoring the situation and will not allow risks to spread."

So at this current juncture, panic-driven actions may be the least cost-effective choice. Looking back at previous cycles, opportunities often arise near liquidity turning points—participants who can stay clear-headed and dare to position themselves in advance usually gain an advantage in the next cycle. Emotions can amplify volatility, but cognition determines how far you can go.

The trend of $ETH may be worth paying attention to. Historically, during periods of loose liquidity, mainstream crypto assets often perform well. Which sectors do you think the funds will flow into first this time?