Recent market signals have aligned.

As soon as the news of another round of liquidity injection by the Federal Reserve came out, I immediately recalled the logical chain I had analyzed repeatedly before. The figure of 16 billion looks not very large, but for those who truly understand the industry, it’s not the number itself that matters, but the underlying trend behind it.

This is the second clear liquidity injection since the pandemic began. From a cycle perspective, this signal has shifted from red to green. More importantly, if you look closely at on-chain data, you can understand the current situation.

Bitcoin continues to flow out of exchanges, with institutions and large holders steadily transferring funds into cold wallets and various ETF custody accounts. The staking and locking volume of Ethereum also remains high. What does this indicate? It shows that the market’s available liquidity is gradually drying up.

As liquidity tightens, there are fewer sellers. Meanwhile, the supply of stablecoins has quietly started to rebound—these are the "ammunition" market participants are preparing to use to scoop up positions.

Putting these two things together: on a macro level, there is fuel for liquidity, and on-chain structures have dry wood locked in—waiting for ignition. Once the price breaks through the trigger point, those still waiting for deeper dips and traders holding high-leverage short positions will immediately turn into the driving force of the market. The short squeeze scenario is already faintly emerging.

Therefore, I have no change in my previous judgment: the underlying logic of a bull market is still in place. Every correction triggered by short-term sentiment is just an opportunity to get off the train and pick up positions.

My strategy is simple—be greedy when there is panic, and now that the signals are clearer, be even greedier. The core positions have already been gradually deployed, and the remaining work is to hold steady with the current chips, occasionally increasing some gains during wave trades.