Powell’s latest speech has completely torn up the bears’ playbook. I’ve been reminding everyone not to dump cheap chips in a panic, and now it’s clear that judgment was right—after this tug-of-war between bulls and bears, the Fed has openly started injecting liquidity, giving us the answer. The real market rebound is just beginning.

How aggressive was this move? QT officially ends today. This isn’t some “slowing balance sheet reduction” word game—it’s $95 billion a month in real money flowing back into the market. It’s like the Fed personally turned on the faucet; the previously tightened liquidity is instantly loosened, and after waiting so long, the market is finally getting the rain it needed.

A rate cut in December? The probability has locked in at 87%. What’s even more crucial is that a path for consecutive rate cuts in 2025 is now on the table, and funding costs are entering a clear downward trajectory. The bears’ last line of defense—a high interest rate environment—has completely collapsed.

Powell also specifically emphasized: policy will be data-driven, not swayed by politics. Even if some people play the tariff card, the Fed will ease if it needs to, which has really reassured the market.

The response in the data has been even more direct: funding rates surged violently from -0.008% back to zero, triggering a cascade of short covering; major on-chain players made clear moves, with old whales clearing out borrowed USDT and aggressively buying up BTC and ETH as core assets; ETH’s capital flows were especially dramatic, flipping in a single day from an $80 million net outflow to a $160 million net inflow.

Market sentiment has started to warm up from the freezing point.