Global assets have reached new highs, but the crypto world has remained stagnant for the past four years, even regressing. The Fed has been aggressively implementing point shaving during this period, and risk assets are the most sensitive. However, this sensitivity does not need to be immediately reflected in the market data; it occurs at the moment price fluctuations begin. Previously, after Bitcoin experienced a 30% pullback, it consolidated for about three months. This time, if we calculate from early October, it seems similar. The market data has about 10 days left to form a fluctuation structure, with all the liquidity above being short positions. The market maker has wiped out all the long positions after a year and has then nurtured a bunch of short positions. We will observe the changes quietly; as for the short-term battles and their fuel, we just need to watch the excitement.

The Fed plans to inject $6.8 billion into the market on Monday to ease year-end liquidity pressures. This short-term liquidity support is typically aimed at situations where funds are tight, especially as banks and institutions rebalance their balance sheets at year-end. While it does not change the long-term policy direction, it often provides temporary relief for risk assets by alleviating funding pressures. Historically, liquidity injections typically first stabilize the market and then selectively boost assets that are most sensitive to liquidity, with the actual impact depending on whether this is a one-time operation or the start of ongoing support.