This week's Federal Reserve interest rate cut is, simply put, like a weather forecast saying it will rain today, and it actually does rain—completely expected, as the market has already digested it.

But the real scoop is hidden behind this— they are going to start quietly buying government bonds.

Don’t worry about what it’s called, the reserve management purchase plan; it sounds very official, but simply put, it’s just printing money to buy their own government bonds. Although this move is not large in scale compared to the previous QE, its nature has changed.

For the past two years, the Federal Reserve has been draining liquidity, pulling money back from the market. Now, it is starting to inject liquidity. This isn’t about how much it’s injecting; it’s about the action of opening the floodgates. This is a significant directional change, a turning point.

You need to understand a core logic: the rise and fall of the market is more influenced by liquidity than interest rates or company performance. When there’s more money, everything rises with the tide; stocks, cryptocurrencies, and other risk assets naturally become easier to increase in value.

The current situation is that the faucet has started to open, although the flow isn’t large, the direction is correct. Moreover, the interest rate market is also telling you: don’t rush, there will be further rate cuts ahead.

This is simply a long-awaited relief for the crypto market. When it comes to Bitcoin, don’t look at the price-to-earnings ratio; just pay attention to whether the dollar faucet is tightening or loosening. As long as the Federal Reserve shifts from draining liquidity to injecting it, even if it’s done secretly, smart money will act quickly and position themselves in advance.

So my view is:

This is definitely not the kind of massive flood we saw in 2020, but it could very well be a liquidity turning point that many people underestimate.

The market is always seen first by a few people, who then quietly enter; by the time the majority reacts, the trend may have already moved significantly.