Breaking! The Federal Reserve overnight repurchase agreements pumped out $16.81 billion, which doesn't look like a routine operation—it's clearly an emergency signal indicating liquidity stress in the money market.

Three years of balance sheet reduction have pushed bank reserves to their lowest levels in recent years, and the SOFR rate is approaching the policy ceiling. The market is fearfully worried about a replay of the 2019 repo rate spike to 10%. The overnight reverse repurchase operation, this "liquidity reservoir," suddenly releases funds—essentially injecting blood into the financial system to prevent year-end liquidity crunches.

Interestingly, while the Fed claims "this is not an easing policy," its actions send a different signal—massive capital inflows into the market, often leading risk assets to rally. After all, when liquidity is abundant, both stocks and cryptocurrencies tend to attract chasing funds. The big players are already gearing up; retail investors should not wait until the market rises to regret.

Mainstream cryptocurrencies like BTC and ETH have an increased short-term rebound probability amid improved macro liquidity. However, markets change rapidly, and risk management should always come first.