#数字资产市场观察 The Fed has finally hit the brakes, abruptly halting years of balance sheet reduction plans. This move comes suddenly, but the underlying pressures have actually been piling up: the U.S. economy can't hold up any longer, the bank's liquidity pool is sounding alarm bells, and the fiscal deficit can't bear the soaring borrowing costs. With three major challenges weighing down, policies can only make a sharp turn.

What about the crypto market? In the short term, it is definitely good news. Liquidity has been loosened, and the rebound sentiment has naturally arisen. However, don't be too happy too soon—the Fed's balance sheet is still at a high level, and with the recent delays in the release of U.S. economic data, the market is completely unclear about the direction, and the fluctuations may be even stronger.

What is truly worth watching is this: stopping the tapering could very likely be a signal that the interest rate cut cycle is approaching. The crypto market is quite sensitive to liquidity, and historically it has always reacted in advance. The trends over the next month or two will likely set the tone for the subsequent phases.