The Federal Reserve's New York Fed President Williams recently revealed an important signal—through continuous balance sheet reduction, the Federal Reserve has adjusted the level of bank reserves to a relatively adequate state. What does this really mean? Simply put, the Federal Reserve believes that the current reserve levels already meet actual demand.

"We have basically reached this level now," Williams said when referring to the theoretically sufficient reserve level. This milestone directly prompted the Federal Reserve to take new actions—last week, they launched the so-called "Reserve Management Purchase" operation.

The logic behind this move is actually quite clear: bank reserves need to increase accordingly with the growth of business scale. In other words, the Federal Reserve is dynamically managing the liquidity of the financial system.

For traders focusing on mainstream cryptocurrencies like BTC, ETH, SOL, etc., such policy adjustments by the Federal Reserve often influence market risk appetite and capital flow, which is worth paying close attention to.