Recently, there’s a signal worth paying attention to—the Federal Reserve’s liquidity toolbox is nearly empty.

What does this mean? For the past two years, they’ve been doing one thing: pulling money out of the market. This “draining” operation has made it tough for the entire risk asset market, and of course, the crypto space is no exception. But now, we might be approaching a turning point—the tools are running out, so what’s next? Most likely, they’ll have to reverse course and start injecting liquidity back into the market.

When the market is short on cash, assets like Bitcoin and Ethereum naturally struggle to rise. Conversely, once liquidity returns and there’s nowhere else for the money to go, crypto assets are often among the beneficiaries. More importantly, the Fed’s quantitative tightening (QT) plan is also nearing its end, which means that market funds may shift from “net outflow” to “net inflow.” The heavy weight that’s been pressing down for two years is finally showing signs of loosening.

What does this mean for us?

First, don’t expect a surge tomorrow. This kind of macro trend reversal doesn’t happen overnight, but it’s definitely an important directional shift.

Second, stay sensitive to information. The Fed’s future policy moves and liquidity data in the market are both worth keeping a close eye on.

Lastly, don’t rush all in. You can start doing your homework now—screen for quality assets and enter in batches. The big cycle opportunities usually belong to those who prepare early, not to those who chase the highs.

Simply put, the tide might be turning. It’s better to see it early and position yourself calmly, rather than scrambling to catch up after the boat has already left. The power of the cycle is immense, but the key is to stand in the right position.