Recently, there has been a lot of discussion about the Federal Reserve's 105 billion overnight liquidity injection. Many are saying "the market rescue is coming" and "the crypto circle has a chance now." But honestly, this understanding is almost the opposite.

I think we need to first clarify a fact: what is the real purpose of the Federal Reserve's liquidity injection? It is not to "escort" the crypto market, but to address the hidden risks within the financial system itself. It is precisely because the system shows signs of stress that the Fed has taken action. For the crypto circle, this is actually a double-edged sword — there may be some short-term rebound opportunities, but these chances are likely a "golden window" rather than a sign of a new long-term bull market.

Having been involved in crypto investing for many years, I’ve seen too many people stumble in this market. There is a very painful rule: most people make money mainly by luck, while losing money is often due to "skill." How to put it? It’s like rushing in when the market is at its hottest, and cutting losses when it cools down. Seeing the "105 billion positive news" makes people want to chase the high, which is a typical case of being driven by emotions.

The key issue is that liquidity injections are temporary. Once the risks in the financial system are alleviated, the Fed could just as easily tighten again. By then, the market will face not a rebound, but a correction pressure. So my clear approach is: don’t chase this rebound, but use it to position yourself.

How to position? My standards are very straightforward, summarized in three points:

First is valuation levels. Compare a coin’s historical P/E ratio, P/S ratio, and other metrics to see where its current valuation stands. If it has fallen more than 50% from the previous bull market top, it can basically be considered undervalued.

Second is fundamental support. Don’t just look at community hype or KOL recommendations; focus on tangible indicators: the project’s user growth trend, trading activity, development progress, and other meaningful metrics. Some coins have fallen because they lack support; no matter how cheap they are, avoid them.

Third is the market cycle position. You need to judge which stage the entire market is in now. Liquidity easing usually means the market is transitioning from extreme pessimism to recovery, and at this point, positioning is much more rational than chasing highs at the top.

In short, this 105 billion liquidity injection is like a signal — the system is showing a stress response. For us investors, the real opportunity is not to chase the rebound for its own sake, but to use this window to adjust our positions and bring in those good assets that have been wrongly killed.

The market always swings between despair and greed. Most of the time, what we see are surface-level rises and falls, but the underlying logic is often completely different. The same applies this time.