Yesterday afternoon just past 3 PM, as soon as this news broke, the market exploded— the global core central banks announced they will continue to increase liquidity injection efforts, flexibly use various open market tools, and ensure market liquidity remains ample. Upon hearing this news, many people's first reaction was: what does this have to do with the crypto market? Actually, it’s a big deal.

For someone who has been in this circle for many years, the significance of this signal cannot be underestimated. Rather than just a simple positive indicator, it’s a market-wide tone-setting signal—those holding no positions might regret it, and those fully invested should buckle up.

Why do I say that? The key lies in understanding the mechanism of how liquidity affects crypto assets. First, liquidity is the lifeblood of this market. Crypto assets are inherently high-volatility risk assets, far more sensitive to capital flows than traditional financial markets. When central banks release abundant liquidity, funds, as if sensing opportunity, will flow continuously into high-return sectors. Crypto assets happen to be a primary target for such funds. More practically, ample liquidity will directly lower market financing costs—simply put, borrowing becomes cheaper. This can directly push up the valuation center of mainstream coins, especially those with solid fundamentals and well-developed ecosystems, which tend to benefit first.

Secondly, abundant liquidity itself is a strong confidence booster for the market. Recently, market volatility has been significant, and investor sentiment has been swinging back and forth. But when the central bank explicitly states it will continue to inject liquidity, this policy expectation is enough to stabilize market sentiment and attract incremental funds. This is not just a technical positive, but a comprehensive shift in psychology and capital flows.