2025-12-29 07:31:38

The recent move by the Federal Reserve has most retail investors still trying to catch their breath...

On the surface, everyone is talking about "the Fed launching a repurchase program." But the real meaning is quite simple — the market is starting to run out of money.

What is a repurchase? Simply put, it’s when the central bank injects money into the market to prevent a system collapse. Banks and institutions exchange government bonds for cash; survival is the top priority.

So what does this mean for us ordinary investors?

In the short term, money flows in, and assets may have a chance to breathe. But in the long term? More money leads to rising prices, and inflation follows. That’s unavoidable.

Interestingly, what big players fear most is never a decline but a lack of trading and liquidity. Because even the best chips are useless if they can’t be sold.

The most painful truth is here — every "market rescue" essentially dilutes the purchasing power of the money in your pocket. It may seem like good news, but it’s really just pushing bad days further into the future.

Thinking this way makes it clear: when the entire market starts shouting "stability" and "bottoms," the truly smart money is already planning how to exit. Conversely, when no one dares to take the other side and trading volume is poor, the real winners are those holding cash.

Now, look back at your positions — are you on the selling side, or waiting for the bottom?

View Original

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.

20 Likes

Reward
20
10
Repost
Share

Comment

0/400

LadderToolGuy

· 01-01 07:00

Really, every time there's a bailout, it's like digging a hole for us. Wake up, everyone. --- Wait, can holding cash now really lead to winning? It feels like inflation will still eat it away. --- That's right, retail investors are always the last to catch the falling knife. --- So should I clear my positions now or keep waiting? Asking this makes my scalp tingle. --- Smart money left long ago, and we're still here trying to figure out where the bottom is. --- No wonder it feels like the money in our hands is becoming less and less valuable. Turns out, that's the reason. --- Lack of liquidity is even more terrifying than the decline itself, really. --- The difference between the sellers and the buyers is so huge. --- Stop, I just want to ask, what should I do now? --- Every time they say it's stable, it gets cut again. Learned my lesson.

View OriginalReply0

FloorSweeper

· 2025-12-31 14:24

They're at it again, cutting the leeks. Stimulating the market by printing money dilutes our purchasing power.

View OriginalReply0

ApeEscapeArtist

· 2025-12-30 16:10

Here comes the same old trick of cutting leeks again; smart money has long since run away. I just want to ask, after this buyback, how much are the coins in retail investors' hands still worth? As soon as the Federal Reserve acts, you’ll know if there’s real profit; the ones truly making money are already building high walls. Every market rescue is just plundering our purchasing power, and this is becoming more and more obvious. Don’t be fooled by those "bottom" theories; institutions have already been pulling people in to take the last bets. For friends still adding positions now, you really need to think clearly if you’re just taking the final shot. Inflation can’t be avoided, but liquidity drying up is more terrifying than a crash. In simple terms, eggs should be put in a basket, but the basket is shrinking. Look at your holdings—have they already become someone else’s chips? My intuition tells me this time we really need to be cautious; liquidity exhaustion is more frightening than a bear market. A bunch of institutions are bullish, and I’m even more panicked... where is the truly smart money?

View OriginalReply0

New_Ser_Ngmi

· 2025-12-29 21:44

Printing money again? Our money is depreciating, and this is true.

View OriginalReply0

DeepRabbitHole

· 2025-12-29 08:01

After all that, it's still just harvesting the little guys, is the scheme that deep?

View OriginalReply0

NeonCollector

· 2025-12-29 07:58

Wake up, it's the same old trick of cutting leeks again. Can the Fed's liquidity injections really help retail investors make money? Dream on. --- Only when inflation arrives do you realize you've been diluted. By then, it's too late to cry. --- That's right, lack of liquidity is the real nightmare, more painful than a limit-down. --- The problem is, you can't tell who is selling off and who is bottom-fishing; it's all just gambling. --- Every time there's a market rescue, wealth is being transferred. There's nothing wrong with that. --- The saying "Cash is king" is indeed true, but no one is willing to hold onto cash. --- Wait, isn't your logic implying that now is the time to reduce positions? Feeling a bit anxious. --- Instead of guessing where smart money is going, better to think about what you can bottom-fish, haha. --- Again with inflation, it's talked about every year. My wallet has long since gotten used to it. --- The key is, when will they start selling? Waiting for the signal to come out?

View OriginalReply0

LayerZeroHero

· 2025-12-29 07:50

Wow, this is just printing money to harvest the leeks. My purchasing power has shrunk again.

View OriginalReply0

ContractSurrender

· 2025-12-29 07:48

Here comes the pump and dump again. All the fancy talk is just about stealing money.

View OriginalReply0

MrDecoder