According to PANews, Chinese crypto analyst Half Wood Summer stated that the Federal Reserve's interest rate cuts and restarted balance sheet expansion operations this week are returning the previously tight market liquidity to normal levels. He predicts that this week and even the next month could become a period of broad market gains.
Half Wood Summer cites his analysis from November 11, stating that the Federal Reserve's end of balance sheet reduction and even the beginning of expansion in December is very similar to the liquidity turning point in October 2019. The signal of 'the taps being reopened' has already appeared, while real large-scale easing may have to wait until May next year, when Trump regains control of the Federal Reserve, potentially repeating the massive liquidity injection pattern similar to March 2020.
Overall, global risk assets are迎来 a wave of "liquidity recovery," and market sentiment is also rapidly improving.
