The recent decision by the New York Fed has sparked considerable attention in the market: the Standing Repo Facility (SRF) has been officially made permanent, and the previous $500 billion limit has been removed. What does this mean?

From a policy perspective, this is not a temporary measure during a crisis, but a long-term liquidity safeguard mechanism within the financial system. When banks face cash pressures, they can conduct repurchase operations with the Fed at any time. Previously, there was a cap limit; now, the limit has been removed.

What does this mean for risk assets? First, it demonstrates the regulatory authorities' commitment to market stability—scenarios of liquidity exhaustion are less likely to occur. Second, the supply of liquidity theoretically becomes limitless. When traditional financial markets are flush with funds, some of that capital often flows into alternative assets seeking higher returns.

From a deeper logical perspective, this is infrastructure built in advance for potential economic fluctuations and debt pressures that may emerge in 2025. The Fed is proactively constructing "dams" to leave room for buffers against possible market risks.

For risk assets like BTC, ETH, and BNB, a plentiful liquidity environment is generally advantageous. When traditional financial pools overflow, fresh capital tends to flow in multiple directions, and the crypto market often becomes one of the targets.

In this policy environment, market participants' mindset may also undergo subtle changes. Risk appetite could increase, and enthusiasm for allocating to highly volatile assets might grow. The key is to understand the logic behind these policy signals, rather than being solely driven by short-term emotions.