According to official Federal Reserve documents, under an extreme stress scenario, the Fed could theoretically inject up to $5 trillion in liquidity using a combination of existing tools. This is not market speculation or rumors but a documented policy potential.



How large is this number? $5 trillion exceeds the total market capitalization of global cryptocurrencies by multiple times, enough to rival the annual GDP of many developed economies. It clearly marks the theoretical limit for central bank responses during crises. Although this is an "worst-case" figure with strict triggering conditions, it sends a clear message to the market: how deep the safety margin of liquidity really is.

From a market perspective, this releases three key signals.

First is confidence. The existence of this number itself says: "Don't worry, the market won't completely freeze." During extreme panic moments, knowing there is such a liquidity safety net behind you is enough to stabilize minds.

Second is expectation management. By openly presenting the theoretical ceiling of easing policies, the market can use this as a reference point for future pricing. Policies are no longer black boxes but are transparent and traceable.

The third, and most direct impact on the crypto market: where will the massive liquidity ultimately flow? Once some funds spill over into traditional finance, the attractiveness of risk assets, especially in the crypto sector, will multiply. Historically, every crypto bull market has been driven by loose liquidity.

Simply put, the Federal Reserve has made its "trump card" size public. It may not necessarily need to use this $5 trillion, but all market participants know this card is there, which in itself will change their decision-making logic.
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HorizonHuntervip
· 10h ago
5 trillion coming in, will crypto still fall? LOL
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NullWhisperervip
· 10h ago
technically speaking, the "theoretical maximum" framing here is doing a lot of heavy lifting. fed's got the tools on paper, sure—but actual deployment involves more friction points than they're letting on. interesting edge case though: once you broadcast the 5T ceiling, you've essentially set market expectations. no way around that now.
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RektRecordervip
· 10h ago
5 trillion? Damn, it's our turn now.
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