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 sufficient state. What does this actually mean? Simply put, the Federal Reserve believes that the current reserve levels have met actual needs.

"We have basically reached this level now," Williams said when discussing the theoretically sufficient reserve level. The achievement of this milestone directly prompted the Federal Reserve to take new action — last week, it launched the so-called "Reserve Management Purchase" operation.

The logic behind this move is quite clear: bank reserves need to increase accordingly as business scales grow. In other words, the Federal Reserve is dynamically managing liquidity in the financial system.

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