2025-12-31 02:23:14

The latest data from the Federal Reserve is worth paying attention to. According to the December meeting minutes, the Fed plans to purchase $220 billion worth of short-term government bonds over the next year, with an average monthly purchase of about $40 billion. This month, $38 billion has already been allocated, and there are two more rounds of operations queued up for January.

What is the underlying logic? The reserve scale has already been reduced to a "moderately ample" level, and short-term financing costs are also rising. This indicates that the market's liquidity environment is undergoing a shift—from easing to approaching equilibrium.

For the crypto market, tightening liquidity often leads to volatility. On one hand, institutional funds may face increased costs; on the other hand, on-chain liquidity will also adjust accordingly. Bitcoin, as a risk asset, is quite sensitive to these macro variables. The key now is to observe whether this debt purchase plan will truly stabilize market expectations or instead exacerbate concerns about subsequent balance sheet reduction.

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ChainSpy

· 4h ago

Is liquidity tightening? Then we need to keep a close eye on the coins in our wallets. --- The Federal Reserve's move... feels like it's still trying to boost market confidence. Can it really stabilize? --- Wait, short-term financing costs are rising, and institutional cost pressures are increasing. Is this an opportunity for retail investors? --- 220 billion in bond purchases sounds like a lot, but compared to the huge market gap, it's just so-so. --- The key question is, when will the balance sheet reduction happen? This current move feels like a delaying tactic. --- When liquidity tightens, the big players on-chain will definitely run first. We, the latecomers, will always be the last to suffer. --- An average of 40 billion per month? So there will be two more waves this month? They're betting the market can hold until spring. --- Ample reserves are good enough. Why still buy bonds? The logic doesn't seem quite right. --- Bitcoin is sensitive, but the real test is the institutional mindset. Once they panic, we all have to follow. --- So, simply put—liquidity is about to collapse.

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GasSavingMaster

· 4h ago

Liquidity tightening? Uh oh, the crypto world is about to tremble. Is the era of easing really coming to an end? No, buying bonds is a stable reserve, right? Why does it still feel like paving the way for balance sheet reduction... Purchasing 40 billion yuan monthly sounds quite aggressive, but does it really have such a big impact on the crypto prices? I'm more concerned about the on-chain selling pressure. The Federal Reserve's approach seems to be teasing the market, promising stability but actually causing panic. Institutional costs are rising, so be cautious. It's hard to predict where the funds will flow. With the balance sheet reduction expectations coming together, it would be good if this wave of market moves can stay stable. Honestly, the phrase "moderately ample reserves" sounds a bit strange...

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DefiVeteran

· 4h ago

Liquidity tightening, and the turbulence is about to begin... Can BTC stay steady this time?

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SatoshiSherpa

· 4h ago

Liquidity tightening? BTC better be careful now, it feels like it's about to start stirring again.

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