$ETH Last week's data was explosive: the Federal Reserve's emergency cash facility (SRF) was tapped for $84 billion in just seven days. Banks are frantically swapping illiquid mortgage-backed securities (MBS) for cash—a scene reminiscent of the turbulence before the 2019 crisis.

Cash reserves in the banking system are running dangerously low, and even their bottom-of-the-box assets are being put into play.

Meanwhile, another noteworthy piece of news: the former president recently mentioned publicly that an economist known for being "strongly in favor of rate cuts" could take over the Federal Reserve in 2026.

Looking at these two developments together?
The tighter liquidity gets now → the louder the calls for Fed rate cuts → and the person possibly taking the helm in the future happens to be the most willing to "open the floodgates."

History doesn’t repeat, but it always rhymes. Every time the banking system cries out for liquidity, it often marks the starting point for a liquidity frenzy.

The market game is now in full swing:
On one side, banks are scrambling for cash to survive; on the other, there's a strange divergence in the gold and silver markets (gold prices falling, silver futures and spot prices inverted), with major institutions robbing Peter to pay Paul.

Two questions are now on the table:

1. Will this round of "cash crunch" directly max out expectations for rate cuts?
2. If we do end up with an even more "dovish" Fed chair in the future, how will the market play out?

Don’t forget: when the system starts relying on an "IV drip" to keep running, it usually means a window for asset revaluation is opening. Every bit of liquidity strain today could be tomorrow’s catalyst for a market move.

👉 Let’s chat in the comments:
Do you think the warning signs are already obvious? Or are you quietly loading up for the next opportunity? $BTC