Last night while watching the market, I noticed a detail—The Federal Reserve is once again engaging in liquidity injections. The scale of 16 billion this time is often understood as a normal market rescue, but the actual operational logic requires a closer look.

This money is essentially targeted through liquidity swap agreements to supplement the US dollar in the international banking system. It may seem far from the crypto market, but global capital is fluid, and eventually, some of it will overflow. The crypto market is like a sponge, highly sensitive to this kind of money.

There is an interesting historical pattern—Every 1% expansion of the Federal Reserve's balance sheet is associated with an average 23% price volatility in the top ten cryptocurrencies over the next 90 days. After the large-scale operation in March 2020, Bitcoin fell to its bottom and fully recovered in five months. Then, it triggered that super cycle. Although this time the scale isn't as large, the signaling effect is strong enough—when traditional finance shows cracks, funds will always seek new outlets.

The most telling evidence is on-chain data. Over the past two days, the stablecoin supply ratio has decreased by 9%, indicating an increasing willingness of off-market funds to enter. Actions by exchange whales also show this—The ratio has risen to a three-month high. Taken together, these details all point to the same conclusion—Smart money is starting to reposition.