2026-01-09 19:23:57

There is a popular saying—injecting $200 billion in liquidity into mortgage-backed securities can leverage the cryptocurrency market. It sounds good, but a closer look reveals this logic is flawed.

First, the scale issue. The $30 trillion digital asset market, $200 billion may seem like a lot, but it's just a small proportion. The real problem is—this money won't automatically flow into speculative assets.

What is the reality? Mortgage rates have decreased, and households are indeed better off. But most of the released funds go into savings accounts or daily expenses, and few people turn around and rush into high-risk assets like cryptocurrencies. That's how the financial system operates.

So what can truly move the market? The answer is actually simple—sustained institutional activity. For example, pension funds adjusting their asset allocations or large amounts of capital steadily flowing into spot ETFs—these are reliable market signals. In contrast, a one-time liquidity injection? That's like a single stimulus, making it hard to form a trend.

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SelfStaking

· 01-09 19:54

Exactly right, pouring 200 billion won't be felt by ordinary people at all; in the end, only institutions can drive the market.

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ProbablyNothing

· 01-09 19:53

Basically, it's just too simple—people are naive and have lots of money. The real catalyst still depends on institutions.

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LazyDevMiner

· 01-09 19:50

Well said, retail investors won't touch this 200 billion market; they've been numb for a long time.

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CryptoComedian

· 01-09 19:45

200 billion pouring in can push the market up? My mom thought so too, but she still got cut. Real funds don't automatically flow into crypto; people are only thinking about saving and spending, understand? Continuous institutional inflows are the real deal; single-shot stimulations are like taking drugs—once it's over, it's done. Wait until spot ETFs actually enter the market stably before getting excited. It's too early to say these things now. The logic isn't wrong, but the market never moves according to logic—that's why we're still here.

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OnchainGossiper

· 01-09 19:42

Basically, retail investors are just dreaming; institutions are the real big players.

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BrokenDAO

· 01-09 19:42

Basically, it's just another old trick of "releasing liquidity to save the market." These people either haven't done the math or are deliberately misleading. Money flowing into the system ≠ money entering the coin market; in between, there are human nature and incentive mechanisms. This has been clearly seen through countless failed governance experiments in the past.

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FOMOrektGuy

· 01-09 19:29

Here comes the same "liquidity myth" again? Wake up, retail investors' money will never flow into the crypto world, institutions are the real players.

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