⚠️ $120 billion in liquidity has already entered the market. Can you feel this wave of "water pressure"?



Recently, the Federal Reserve quietly injected over $120 billion into the financial system through repurchase agreements. This is not traditional QE, but its power is undiminished—it directly lowers short-term interest rates, forcing funds out of low-yield assets like government bonds, prompting investors to seek higher-yielding targets.

So, the question is: what impact will this have on cryptocurrencies?

🚀 We can look at it from several perspectives:

**Liquidity-driven Narrative Upgrades**
When risk-free rates are artificially suppressed, the narratives of BTC as "digital gold" and ETH as "high-growth assets" will both be supported. This is a restructuring of the underlying logic—traditional assets' attractiveness diminishes, while the relative value of crypto assets becomes more prominent.

**Sector Trends Are Observable**
Mainstream coins are the first to benefit from the dividends, but as risk appetite gradually increases, liquidity will slowly diffuse outward, with high-quality ecosystem projects following suit. This process is not instantaneous but involves rhythmic rotation.

**Increased Volatility Is a Double-Edged Sword**
Liquidity-driven markets often experience significant fluctuations. For traders dealing with derivatives, special attention should be paid to position management and stop-loss settings.

📊 To seize this wave, focus on these data points:
- Real-time changes in the Federal Reserve's overnight reverse repurchase agreement scale
- Growth trends in stablecoin supply (especially USDT and USDC)
- Net inflow of stablecoins on major exchanges

The market is currently in a "pricing in expectations" phase. True liquidity transmission requires time to verify. Smart money is quietly positioning, but for ordinary investors, rather than chasing the rally, it's better to solidify position management first.

💬 Which sector do you think this wave of liquidity will ignite first? Layer 1 blockchains, DeFi, AI applications, or Meme tokens?
BTC0,28%
ETH0,3%
DEFI1,72%
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YieldChaservip
· 16h ago
120 billion is really coming, I have already started adjusting my positions. The inflow of stablecoins definitely needs to be closely watched. It feels like this wave is the turn for small-cap coins to take off. Contract traders are now at great risk. I believe the DeFi sector will be the first to break through. By the way, can this water really flow into Meme tokens this time? It still seems like mainstream coins are the first to eat the meat. During the expected pricing phase... I think smart money has already been laid out long ago, while we ordinary people are still chasing the high.
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SatoshiHeirvip
· 16h ago
It should be pointed out that this set of logical arguments has been repeatedly demonstrated since the white paper era; now it's just a narrative cycle with a different coat of paint.
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GigaBrainAnonvip
· 16h ago
120 billion is such a huge amount? Why haven't I felt my wallet getting fatter yet haha Wait, does this mean I should reduce my government bond holdings and buy crypto? That sounds pretty reasonable It's better not to play with contract positions right now. Let's wait until Bitcoin stabilizes. Last time, I got liquidated enough to drink a jar I bet AI coins will surge first this time. That group of retail investors goes crazy without any pattern
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LiquidationWatchervip
· 17h ago
ngl this is giving 2021 vibes and i'm already sweating... been liquidated before watching exactly this kind of play unfold. health factors bout to get tested fr fr
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GweiWatchervip
· 17h ago
I'm here to make money, not to do homework. Just invest the 120 billion directly into mainstream coins, and don't bother with the others for now. I've already blown up once with contracts, but this time I’ve learned my lesson. Let’s see first. The real opportunity should be in small coins, but we need to wait until the mainstream coins finish their run. It feels like the inflow of stablecoins is the real signal. Looking at these data points is just a waste of time. Layer1 might be, but anyway AI applications are almost dead, haha. Money has come in, but who can hold onto this 120 billion? It’s still the same old game of cutting leeks. I'm just waiting to see the Federal Reserve’s next move; everything before was just empty talk.
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