Did you know? At the beginning of December, the Fed made a big move - injecting 13.5 billion dollars into the overnight repurchase market in a single day. What does this number mean? It's even more intense than during the panic of the pandemic in 2020, and it even surpasses the market rescue efforts during the burst of the internet bubble in 2000.

Simply put, overnight repos are when banks use high-quality assets like government bonds as collateral to borrow money from the Fed in emergencies, and pay back both principal and interest the next day. This large-scale move clearly indicates concerns about the market's liquidity being too tight—once liquidity issues arise, it could trigger a chain reaction of liquidations, causing various assets to suffer as a result.

For our cryptocurrency community, this is actually good news. Do you remember the previous incident when ZEC plummeted due to leveraged liquidations? If the market isn’t short on money, the probability of such passive sell-offs would be much lower. The Fed's recent actions are equivalent to injecting liquidity into the system; with more money available, people naturally dare to take risks. As a high-risk asset, cryptocurrencies often benefit first from such a liquidity-friendly environment.

Of course, don't celebrate too early; overnight repurchase is only a short-term emergency measure and does not represent long-term easing. But at least in the short term, the pressure of panic selling in the market will indeed ease significantly.