Breaking news early this morning: The Federal Reserve injected $16 billion into the banking system through overnight repurchase agreements. How significant is this? It’s the second-largest market injection since the pandemic, signaling a clear easing stance.

What does this mean for the crypto world? We need to think it through carefully.

The logic behind central bank liquidity injections is straightforward—when the market lacks funds, it needs to be supplemented. When traditional financial markets are saturated and stock and bond yields are unappealing, capital seeking high returns must find alternative avenues. Historically, after each large-scale liquidity injection, high-volatility assets like Bitcoin tend to attract attention. The data is clear: after similar operations last year, major cryptocurrencies experienced notable short-term gains.

This news indeed adds some optimism to the market. Market sentiment may warm up, which is quite natural.

But we must stay calm. The biggest mistake in the crypto space is being blinded by a single positive signal. The Fed’s liquidity injection is just one of many variables. Global regulatory attitudes, project fundamentals, technical trends, macroeconomic expectations—these are all critical factors. Relying solely on one piece of news to loudly proclaim the bull market is overly naive.

Many people can’t resist the urge to go all-in at the slightest positive news, eager to bet everything today. The result? They often chase the high and get caught, suffering the biggest losses in these FOMO-driven trades.

The rational approach should be:

First, stay observant. The next few days are crucial—watch whether funds are truly flowing into the crypto space, how the broader market reacts, and what on-chain data shows. Don’t rush to make a move all at once.

Second, if you really want to participate, use spare funds for testing. Make small, multiple attempts to build positions gradually, rather than investing your entire savings at once. Even if your judgment is off, losses will be manageable.

Third, diversify your portfolio. Don’t focus all your attention on just one coin. Allocate some funds to mainstream coins and promising projects with solid fundamentals to effectively reduce single-point risks.

Fourth, keep your mindset stable. Price fluctuations are normal in crypto. Today’s positive news might be overshadowed by other information tomorrow. The key is to stay in the game long enough—opportunities will keep coming.

And most importantly: rational planning is always more profitable than FOMO chasing. Market opportunities never disappear; as long as you’re in the game, there’s always a chance to start over. Follow your strategy and don’t be swayed by crowd sentiment.

Stay tuned for further developments and make decisions when the time is right.