$BTC $ETH $ZEC

A major announcement just came out – the Federal Reserve is going to release liquidity again tonight. They will inject $6.8 billion into financial institutions through repurchase agreements, marking a continuous operation over the past 10 days, with a cumulative scale nearing $38 billion.

This routine is actually quite familiar. As the year comes to an end, the banking system lacks cash, and everyone is afraid that the overnight lending rate will suddenly spike. The Federal Reserve plays the role of a temporary financial caretaker: lending cash to banks, taking government bonds as collateral, and then reclaiming it a few days later. The official term is "liquidity management," and the underlying logic is to stabilize the financial system.

The market has erupted. Many seasoned traders are starting to ponder a question: Will this wave of liquidity eventually flow into crypto assets?

On the surface, this money went directly into the accounts of traditional financial institutions. However, as overall liquidity eases, market sentiment will also loosen. Some active funds are always looking for high-yield outlets—what used to be the stock market now has more options. Coupled with the recent approval of the BTC spot ETF, institutions were already on the lookout for entry opportunities, and this wave of "year-end liquidity injection" may have become a psychological suggestion.

That said, don't overinterpret. 38 billion compared to the Federal Reserve's trillions in assets is just a drop in the bucket. It can bring short-term emotional stimulation, but to say this is the starting point of a "new round of liquidity bull market" is clearly an exaggeration.

The real question is: how deeply is the transfer of traditional liquidity to the crypto market supported by fundamentals? Or is it merely the wishful thinking of traders?

What do you think?