2026-01-07 09:25:36

The Federal Reserve's balance sheet has recently shown signs of rebound. What does this change mean for the crypto market?

From a macroeconomic perspective, the expansion of the Federal Reserve's balance sheet typically reflects an improvement in liquidity conditions. Historical data shows that whenever such policy signals appear, risk assets in the market—including cryptocurrencies—tend to attract a new wave of capital attention.

In the current context, mainstream cryptocurrencies like Bitcoin and Ethereum have already demonstrated strong technical performance. Coupled with the positive signals released by the Federal Reserve, many institutional investors are beginning to reassess the allocation value of crypto assets in their portfolios.

In the short term, this wave of policy favorable factors may inject new imagination into the market. However, investors should still pay attention to the subsequent performance of actual economic data and rationally assess the risk-reward ratio.

BTC0,3%

ETH1,09%

View Original

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.

16 Likes

Reward
16
8
Repost
Share

Comment

0/400

TokenVelocity

· 01-10 09:25

The Federal Reserve's liquidity injection, the crypto world is excited again... But don't be fooled, can it really break new highs this time? --- Liquidity rebound = rising crypto prices? The logic isn't wrong, but history always loves to surprise us. --- Institutions reallocating into crypto? Then what were they doing before... Just talking nicely. --- Short-term imagination vs long-term economic data, who will win this time? Feeling a bit confused. --- BTC and ETH are both rising, but it still feels like the same old tricks... Will it really be different?

View OriginalReply0

BlockchainBrokenPromise

· 01-10 04:46

The Federal Reserve's printing press is about to start again. Is this time really different? --- Just HODL, don't overthink it --- By the time institutions enter, retail investors have already been cut once. How many times do we have to go through this routine? --- Liquidity improvement = continued inflation surge. The coin price may rise, but purchasing power might still be depreciating --- Bitcoin's technicals are strong? Ha, to put it nicely, it just hasn't collapsed yet. Just wait and see --- It's the same old story. What did they say around this time last year? --- A rebound in the balance sheet means just buy the dip? That's too naive, buddy --- Reevaluating institutions? They are assessing how to arbitrage from retail investors --- Short-term imagination, long-term heavy losses. Do you understand? This is called being a leek (retail investor) --- Every time there's a policy positive, there's a big drop. Just wait

View OriginalReply0

CryptoSourGrape

· 01-09 00:48

If only I had seen the Federal Reserve's balance sheet expansion signals earlier, it's too late to get on board now.

View OriginalReply0

LiquidityWizard

· 01-07 09:55

actually, the fed's balance sheet expansion is theoretically a liquidity injection, but let's be real — most people just see "go brrr" and fomo into btc. statistically significant? maybe. empirically sound? we'll see in q2's actual data.

Reply0

RetailTherapist

· 01-07 09:55

Is it going to rise again? As soon as the Federal Reserve loosens monetary policy, these institutions start buying the dip. They really rush in as soon as they smell money.

View OriginalReply0

FlashLoanLarry

· 01-07 09:54

lol fed printer go brrrr again... but here's the thing nobody talks about—opportunity cost on stables rn is getting spicy. why hold usdc at 5% when you could be farming basis points elsewhere? that's the real alpha play they're sleeping on

Reply0

AlphaLeaker

· 01-07 09:53

The Federal Reserve is easing liquidity, is the crypto market about to take off again? Historical experience points to this, but this time is truly different... It feels like the old routine again, but the question is how long can it last? Institutional entry sounds good, but retail investors still need to be cautious and avoid getting caught off guard. Can this round of gains last until the end of the year? It's a bit uncertain. Loose liquidity = crypto prices rise? Wake up, everyone, economic data is the real key. Bitcoin has already risen so much, is there still room for imagination? 🤔 Good news is good news, but we still need to see actual economic data materialize. Starting to talk about policy benefits again, why do I feel like it's always the same every time...

View OriginalReply0

ShortingEnthusiast

· 01-07 09:43

Is the Fed printing money again, and is the crypto market about to take off? Why do I feel like I've seen this playbook countless times? --- Hmm... abundant liquidity must be good news for crypto, right? Then why did it crash in 2022? --- Institutions rebalancing? Wait, how did they finally cash out? --- Short-term imagination is maxed out, long-term is definitely a cut. --- Rationally assessing risk and reward? Who's listening these days? Going all in is the only way. --- Is Bitcoin strong? Once policies shift, we'll see what a real plunge looks like. --- Another night of leek harvesting, old tricks again.

View OriginalReply0