Last night, around midnight, did you keep an eye on the market?

Bitcoin suddenly surged from the intraday lows, with a nearly 5% rally. Many people looked at the candlestick chart in confusion: no significant news came out, so where did this violent surge come from?

The market never moves wildly without reason. This time's trigger is hidden across the ocean, at the Federal Reserve.

**What is Wall Street experiencing?**

Citibank, Barclays, Bank of America—these financial giants have recently issued collective warning signals — dollar liquidity is tightening, and the shadow of a "cash crunch" is approaching.

Just look at the numbers. The reserves in the US banking system have fallen to the lowest level in four years. Meanwhile, the US Treasury is continuously issuing debt, forcing banks to use real cash to buy government bonds. On one hand, deposit reserves are being drained; on the other hand, the demand for new funds is constantly surging. Banks are caught in the middle, only able to raise interest rates to "grab money" from the market.

The entire financial system's liquidity pool is visibly shrinking at a rapid pace.

**Is the Fed about to step in?**

Here’s the key—this liquidity crisis might force the Federal Reserve to restart easing earlier than planned.

The signals are already there. Over the past few days, the Fed has injected $125 billion into the market through repurchase operations. Although they haven't officially announced it, the market has already sniffed out the scent: the printing press is warming up.

Historical experience tells us that whenever the Fed loosens monetary policy, risk assets tend to lead the dance. The crypto market is extremely sensitive to liquidity; when money loosens, high-beta assets like Bitcoin react immediately. That sharp rally last night was essentially smart money rushing ahead, betting that the Fed will further ease in the near future.

So don’t just focus on daily fluctuations. The real variables influencing the market are often buried deep in macro narratives. While others are still debating how much it rose yesterday or fell today, those who understand the game early have already set their plans in motion.