$84 billion in one week—the usage of the Fed’s emergency cash facility directly exposes the anxiety within the banking system. Institutions are frantically dumping MBS for liquidity; this script is almost identical to the 2019 liquidity crisis. What’s more subtle is the rumor that a somewhat “dovish” economist may take over the Fed in 2026.

The current logic is simple: the worse the cash shortage, the louder the calls for rate cuts; and the next person at the helm is inclined to ease even further—so how will this play out?

The market is already red-hot. Banks are scrambling for cash to stay afloat, gold and silver prices are moving in bizarrely divergent ways, and big institutions are obviously robbing Peter to pay Paul. Here’s the key question: will this round of “cash crunch” fully price in rate cut expectations? If looser monetary policy really materializes, how will the crypto market react?

History tells us that when the system starts to rely on “infusions” to keep running, it’s often the starting point for asset repricing. The tightness or looseness of liquidity directly determines the rules of the next game.