#美联储政策分析 Here we go again talking about the Fed, but this time it’s really different. Everyone is focused on the 25 basis points cut, not realizing that the more important action is on the balance sheet side.

The Fed has just stopped shrinking the balance sheet, and now liquidity in the banking system is tight, which is a signal. The key point of this week's FOMC is actually: will they clearly state that they want to expand the balance sheet? It is said that starting from January next year, they may invest $35 to $45 billion per month to buy government bonds, and this money will ultimately flow into the market.

In simple terms, it means that the Fed may start to "loosen" its monetary policy. What does this mean for the crypto sphere? When liquidity is abundant, funds will always flow into risky assets, and the crypto market will naturally be taken care of. So don't just focus on whether interest rates are lowered; the real driving force may lie in the expectations of balance sheet expansion.

In my opinion, after the results of this week's Fed meeting are announced, paying attention to the specific timetable and amount for balance sheet expansion is more valuable than focusing on the magnitude of interest rate cuts. Whether the cryptocurrency price rises or not depends on how liquidity comes in.