Recently, there has been a rather strange phenomenon—major Central Banks around the world injected over $20 billion in Liquidity in the past week, and the fiscal departments added more than $50 billion, with the Asia region releasing the equivalent of 1 trillion RMB in Liquidity. With such a significant amount of funds being injected, it should logically lead to Crypto Assets taking off. But the reality is harsh, as the market continues to fall.



Why does the price of the coin fall when there is more money? Many people can't understand this logic.

In simple terms, an increase in liquidity does not equal an increase in market confidence. There are several major issues at hand that remain unresolved: the financial environment is still tense, traders are holding back, fearing being trapped; regulatory policies are still opaque, and no one knows what will happen next; the macroeconomic situation is also weakening, and those investors with weak resolve have long since been scared out of the market.

This has led to a situation where, although money is flowing, no one really dares to enter the market on a large scale. Central Bank liquidity injections can only make the market less dire, far from meeting the conditions needed to trigger a real rebound. For Crypto Assets to truly rise, it requires the simultaneous coordination of interest rates, inflation, and economic growth.

Before this, the market's performance will most likely be like this:

Volatile fluctuations - today the price rises, tomorrow it falls back, just back and forth like this.

False breakout - Occasionally there will be a surge that attracts retail investors, and then suddenly the price crashes, trapping people badly.

Black swan event - suddenly a bad news comes, and the market experiences a sharp fall, catching you off guard.

Smart money is waiting - those big funds are on the sidelines, just waiting for the real bottom signal to appear before taking action.

Investors who can hold on during this stage without being washed out often reap the greatest rewards in the next cycle. The choices made now determine future outcomes—whether to lay out plans early or continue to observe, depends on how deep your understanding of the market is.
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