Don’t just focus on the noise around rate cuts—the Fed has recently done something even more explosive: ending quantitative tightening while launching the Reserve Management Purchase Program. What does that mean? Every month, $35 billion is being pumped directly into Treasury bills—over $400 billion in liquidity injected over a year.

This money isn’t just going to sit quietly in the banking system. How tight are bank reserves right now? The secured overnight financing rate is almost hitting the ceiling, which means the traditional financial system’s reservoir is about to overflow. So here’s the question: where will all this new, massive liquidity flow?

History tells us that every time the Fed expands its balance sheet, global capital starts getting restless. But this time is a bit different—the traditional markets are already saturated, and the money needs a new outlet. Crypto markets? Decentralized, highly volatile, and potentially high-yield—they are practically the ideal destination for excess liquidity. Bitcoin, Ethereum, and other major coins might not just see regular gains; we could be looking at a round of value re-pricing.

But let’s be clear: massive capital inflows are never gentle. They tear through market structures like a beast—opportunities double, but so do risks. You could be on the peak today and in the valley tomorrow.

In short, this isn’t ordinary monetary easing; it’s the Fed being forced to play its trump card, which, to some extent, exposes deeper issues within the economic system. Confidence in the traditional system is shaking, and capital is starting to view the crypto market as a new safe haven or growth channel.

Real players study macro trends, not just stare at candlestick charts and dream. In the face of a capital flood of this scale, blindly following the herd is just handing money to the market. You need to see the undercurrents in capital flows—know where the money is coming from and where it’s going. Smart people prepare their strategies ahead of time, not scramble when the wave hits.

No one can dodge this storm, but those who can keep pace have a chance to profit from the volatility instead of being drowned by it.