Recently, the Federal Reserve injected another $16 billion into the banking system, marking the second time since the pandemic that such a large-scale operation has occurred. On the surface, this appears to be a policy move within traditional finance, but its impact on the entire crypto ecosystem exceeds expectations.

This massive liquidity injection does not directly flow into Bitcoin or Ethereum wallets, but its transmission mechanism warrants deep consideration by market participants. When central banks continuously release liquidity, these funds typically first impact traditional asset markets, then seek higher-yield investment targets. In recent years, the asset classes with the most concentrated global liquidity and the most extreme risk-reward ratios have been decentralized digital assets with a fixed supply and no control by a single institution—especially BTC and ETH.

From another perspective, the frequent actions of the Federal Reserve are essentially diluting the purchasing power of the US dollar. When confidence in the centralized monetary system wavers, people naturally turn to alternative assets with anti-devaluation properties. Why does this attract market attention? Because it reflects profound changes in the global macro environment.

For investors, current strategies should include several dimensions:

**First, avoid blindly chasing highs.** Liquidity needs time to ultimately push risk assets higher, and the market is likely to experience phased adjustments due to expectations gaps. Players who rush to go all-in may often become passive recipients of volatility.

**Second, focus on allocating core assets.** Amidst market turbulence like a flood, only a few truly serve as value anchors. The scarcity consensus of Bitcoin, Ethereum’s ecosystem value, and tokens of projects with genuine users and innovation capabilities are effective tools for long-term resistance to currency devaluation.

**Finally, maintain sufficient trading flexibility.** Every large-scale intervention by the Federal Reserve can sow the seeds of market volatility. Keep ample funds in reserve and wait for opportunities when panic leads to the mispricing of quality projects—this is when greed can be most valuable.

The macro liquidity turning point is often a watershed for the crypto market, and this time is no exception.