The Federal Reserve's recent major move has attracted a lot of attention: it canceled the $500 billion cap on the repurchase agreement tool and made it a regular policy. This is not a massive flood of liquidity, but rather a defensive liquidity management measure.

Why do this? Basically, it's to prevent a repeat of the liquidity crunch in 2019. Currently, the Fed is in the final stages of shrinking its balance sheet, while also dealing with disruptions caused by tariff policies. Instead of waiting for problems to erupt and then firefighting passively, it's better to take proactive steps to stabilize the situation. The policy approach has shifted from patching holes to preventive measures.

But note that the actual liquidity injection still depends on the market’s real needs, and with inflation targets in place, there's no need to worry about endless money printing.

What about the impact on the market? In the short term, highly elastic assets like BTC will be the first to benefit. Once risk appetite increases, they tend to lead the rally. Growth stocks in the US stock market can also benefit from lower financing costs. However, there's a risk—if inflation rebounds again, the Fed might be forced to tighten policies, which could cause crypto assets to become highly volatile.

From an operational perspective, in the short term, focus on BTC's performance. In the medium term, keep an eye on US stock profits and the pace of rate cuts as benchmarks. The most important factors are still inflation data and the Fed's policy signals. Investors should always be prepared to adjust their positions and stay sensitive to interest rate changes and economic warning indicators.