Let's talk about what's really going on in this market. The Federal Reserve's recent moves are quite perplexing—pumping liquidity on one hand and draining it on the other. This contradictory operation has left the market completely confused.

Here's the specific data: on December 22nd, they injected $6.8 billion in a single day, and over the past 10 days, a total of $38 billion has been pumped into the system. At first glance, it seems impressive—like they’re pouring real money into the market. But the key point is, on December 18th, the overnight reverse repurchase agreement (RRP) scale hit $103.61 billion. What does this mean? It indicates that the Fed is pouring water with one hand and scooping it out with the other—just after injecting liquidity, they’re pulling it back out. Financial insiders say this is "money spent on loneliness."

Why engage in such contradictory operations? Simply put, it’s because the insatiable US debt hole is causing chaos. In just three months, debt has increased by $7 trillion, and market liquidity has been drained to the extreme. Interbank borrowing rates have soared, making it much harder for small and medium-sized enterprises to get financing, and the entire system’s "blood circulation" has slowed down.

Theoretically, pumping liquidity should ease the tightness. But all this liquidity is flowing mainly to the top-tier traditional financial institutions—S&P 500 hits record highs, and gold prices are rising too. As for retail investors? Bitcoin is stuck at $86,000, unable to go higher or lower. The fear and greed index has dropped to 25, indicating extreme fear. Many are asking whether they should cut losses and exit.

From another perspective, this market behavior is actually a result of the Fed’s "schizophrenic" operations creating a structural split—big institutions are eating the gains, while retail investors are drinking the soup. This isn’t about giving up; it’s about the market adapting to a new era of liquidity. Bitcoin’s sideways movement might actually be a quiet period before big funds make their next move. The Christmas rally didn’t arrive, and perhaps there’s still hope for a year-end surge. The key is to understand the logic behind these operations and not be fooled by the surface data.