On December 30th, the Federal Reserve injected 16 billion in liquidity into the market this morning, sparking heated discussions in the crypto community. Renowned market analysts pointed out that the Federal Reserve is gradually increasing its easing measures, and the scale is expected to continue expanding. Compared to the large-scale easing during the pandemic in 2020, this liquidity injection marks the beginning of the second wave of a super easing cycle.

Will history repeat itself? Looking back at the easing after the 312 pandemic, the crypto market subsequently experienced a surge of upward momentum. Mainstream assets like Bitcoin and Ethereum soared, and countless participants achieved wealth growth during that cycle.

The current situation is even more worth paying attention to. Institutional funds are actively positioning in Bitcoin and Ethereum, and market distribution is undergoing profound adjustments. Once the market starts to rise, the short positions established earlier will face tremendous pressure—slippage caused by liquidations could be very frightening, and highly leveraged shorts might even be forcibly liquidated.

This liquidity release by the Federal Reserve, combined with the reorganization of crypto market positions, raises the question: is this the prelude to a bull market or a trap for bears? Some believe that institutional buying could trigger a new bull run, while others worry that chasing in might mean catching a falling knife at a high level. By the end of 2025, the storyline of the crypto market is destined to become even more complex due to these policy signals and capital flow changes. The key is to closely monitor subsequent market trends to find one's position in this opportunity.