Here's an even crazier news than a rate cut.

At the FOMC meeting, everyone was focused on rate cuts and the dot plot, but the real core was overlooked—RMP (Reserve Management Purchase). The Fed is injecting $40 billion per month into short-term bonds, a move that boosts BTC and ETH much more than a 25 basis point rate cut.

The market has been torn: Bitcoin halving cycles clash with economic cycles, and the pandemic has disrupted the rhythm causing mismatches. Now, the answer might be emerging. The last time the Fed restarted repurchase operations was in 2019—do you remember what happened that year?

That autumn’s "repo crisis" was essentially the same as this RMP. The only difference? The Fed stubbornly refuses to call it QE. But look, it looks like a duck, walks like a duck, quacks like a duck—it’s a duck.

In September 2019, the overnight repo rate soared to 10%, and the market was short of cash. Powell announced monthly purchases of $60 billion in short-term government bonds, still saying "This is NOT QE." Familiar? Same recipe, just a different packaging.

This time, the Fed says it will buy $40 billion of short-term bonds over the next 30 days, claiming it’s to "maintain ample reserves." The script is identical to 2019: superficially fixing the plumbing, actually flooding the system.

But don’t rush to call a bull market.

The lesson from 2019 tells us that liquidity transmission can be delayed. In Q4 that year, the market initially reacted to the hawkish stance of "pause rate cuts" with risk aversion, combined with year-end profit-taking, leading to a correction in asset prices.

A true explosion might have to wait until next year. Injecting base currency into the banking system takes time, and with the TGA account balance rising during the tax season in April, the excess liquidity will start chasing high-beta assets. By then, the crypto market might actually enjoy a real rally.

Be patient, the good show is yet to come.