Recently, I came across a research report released by Delphi Digital, and I felt a surge of excitement—the Fed’s liquidity buffer is about to run out, and the market may be approaching an inflection point.

To put it simply: previously, the Fed drained liquidity through reverse repo operations, but now this buffer pool is almost empty. Next, Treasury issuance will directly consume bank reserves, and at that point, the Fed will most likely have to expand its balance sheet and inject new funds into the market. More importantly, with the end of quantitative tightening, marginal liquidity is turning positive for the first time since 2022.

What does this change mean for the crypto market? With more money, capital naturally seeks high-yield assets. Cryptocurrencies are extremely sensitive to liquidity changes—historically, during every easing cycle, mainstream coins like Bitcoin and Ethereum are usually the first to benefit. This policy shift is likely to become the fuel driving a new round of bullish momentum.

But let me add a word of caution—good news doesn’t mean an immediate surge. The crypto market itself is highly volatile, and it takes time for policy changes to be reflected in prices. Going all in blindly right now? That’s just giving money away to others.

A more prudent approach would be to build positions in batches with quality assets, such as dollar-cost averaging into mainstream coins to diversify risk; keep track of the Fed’s subsequent actions and market sentiment indicators; and set take-profit and stop-loss points—don’t let emotions dictate your decisions. Remember, in this market, surviving longer is more important than making quick profits.

The environment is indeed warming up, but whether you can seize the opportunity depends on your strategy and mindset. How long do you think this round of liquidity easing will last?