The latest move by the New York Fed has stirred the market: repo tools are becoming normalized, and the 500 billion USD operational cap has been completely removed. This is not a minor tweak but a fundamental reshaping of the entire liquidity framework.

Looking back to 2019, overnight rates once soared to an absurd 10%, and that "cash crunch nightmare" still lingers in market participants' memories. This time, the Fed's stance is very clear: they will not allow such a tragedy to happen again. Opening the "liquidity floodgates" in advance has become their new routine.

But the true background may be more complex. Currently, volatility in the US Treasury market is intensifying, the ghost of quantitative easing has not yet dissipated, and the balance sheet reduction plan is quietly slowing down. The impact of tariffs from the Trump era is still ongoing, and the market needs a calming dose. The move to remove the cap is precisely telling everyone: ammunition is plentiful, and as much as needed is available.

For the crypto market, this signal is especially critical. Highly volatile assets are essentially liquidity seekers. When central banks vigorously open the tap, funds will first flow into the assets that are easiest to fluctuate and can generate the most returns. Bitcoin and other digital assets will undoubtedly be the first to benefit from this "timely rain."

What does this shift signify? Monetary policy is moving from a passive "post-event remedy" mode to an active "preemptive defense" mode. Expectations of easing have been pushed to the limit. The wind has completely changed direction, without a doubt.

For investors, three signals are worth continuous monitoring. First, keep an eye on the trend of overnight repo rates— as long as this number remains stable, risk assets will continue their rally. Second, be alert to the risk of inflation resurgence—the long-term consequence of large-scale liquidity injections is a continuous fueling of inflation, which is a ticking time bomb. The third suggestion is to heavily allocate to fundamentally solid quality assets—when the tide rises, only assets with real core value can stand firm after the wave recedes.

The market is now at a crossroads. Is this the beginning of a new round of liquidity expansion, or the last moment of false calm before the storm? No one can give an absolute answer. But from a liquidity perspective, in the next three to six months, will Bitcoin be the first to break through its historical ceiling, or will the US stock market once again lead the global markets? This question itself reflects the true current market sentiment.