Will the Fed's Expected Money Printing Really Move the Crypto Market?

Recently, there have been rumors in the market that liquidity may tighten again by the end of the year, and some Wall Street institutions are preparing for a possible "cash crunch." If the Federal Reserve really launches a new round of liquidity injection, what will that mean for crypto assets? Let's break down the logic.

Just look at the historical record. In 2020, during that massive liquidity release, the Fed's balance sheet soared, flooding the market with liquidity. Take a look at $BTC's performance: from a few thousand dollars at the start of the year, it shot up to nearly $70,000—a more than tenfold increase. This wasn't a coincidence; it was the inevitable result of traditional financial easing and funds seeking safe-haven assets.

When traditional markets are short on cash, the crypto market often becomes the next target for smart money. Why? Because assets like $BTC and $ETH have digital scarcity and global liquidity—making them, in a sense, the "hard currency" of digital assets. In comparison, fiat currencies face greater devaluation risks.

How should retail investors see this? Instead of worrying, it's better to clarify your thinking. First, pay attention to policy timing—every statement by the Fed will influence market expectations. Second, choose assets with fundamental support: $BTC’s network security has stood the test of time, and $ETH’s ecosystem as a smart contract platform continues to strengthen. Third, manage your risk—the crypto market is highly volatile, so only invest what you can afford to lose.

Opportunities always favor the prepared. Instead of missing out, start observing market trends now and do your homework for the possible liquidity window. The starting point of the next cycle may be quietly brewing in the choices you make today.