2025-12-26 11:22:49

Friends, recently the Federal Reserve's series of actions has left people stunned. On one hand, they loudly proclaim anti-inflation measures and steadfast tightening, while behind the scenes, they are trying every possible way to inject liquidity into the market. BitMEX co-founder Arthur Hayes recently bluntly stated—this newly announced "Reserve Management Purchase Plan" (RMP) is essentially just a renamed version of quantitative easing.

Having been in the crypto space for seven or eight years, I am well aware of the tricks behind such policies. On the surface, they sound good, but the key is where the money flows. Today, I’ll break down this matter and analyze what kind of chain reaction this move by the Federal Reserve might trigger in the upcoming market.

**Surface tightening, covert expansion of the balance sheet**

Hayes’s judgment is quite sharp. The Fed says "balance sheet reduction," but in reality, it might be doing the opposite; when it talks about "reserve management," it’s essentially printing money. The RMP plan appears to be about adjusting liquidity on the banking side, but the actual action is buying short-term government bonds, which is equivalent to injecting funds into the market.

Compared to traditional QE, which straightforwardly involves large-scale purchases of long-term government bonds or MBS, this approach is more "sophisticated." It uses more subtle means to avoid direct market scrutiny. But in the end, the money supply still needs to expand, and inflation expectations are unavoidable to rise.

In March 2024, the Federal Reserve’s "Bank Term Funding Program" (BTFP) officially ended. At that time, many people worried about liquidity tightening. Now, it turns out they just changed the tool’s name and continued doing the same thing with new tricks.

**The "illusionary playground" of liquidity**

Once such repeated actions occur in liquidity supply, market participants are prone to decision-making dilemmas. Is the Fed truly tightening, or is this just a smokescreen? This uncertainty is most likely to erode trading enthusiasm.

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AirdropAnxiety

· 11h ago

This move by the Federal Reserve, to put it nicely, is reserve management; frankly, it's just the same old trick with a new coat of paint. We've seen through it in the crypto world long ago.

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DataPickledFish

· 11h ago

Speaking of which, the Federal Reserve's operations are really just a slow dance with both hands, the printing press never stops. --- Changing names and playing tricks, in essence, it's just injecting blood into the market. People in the crypto circle are well aware of this game. --- Repeatedly manipulating liquidity, truly testing people's resolve. No one knows what the next move will be. --- Renaming BTFP to continue exploiting the system, the Fed's tactics are brilliant, perfectly concealed. --- Isn't RMP just a disguise for QE? Playing it smoothly but can't change the essence. --- Inflation expectations are rising again, but is this really the case or just a smokescreen? Anyway, a lot of money has been printed. --- Market participants now feel like they're spinning in a psychedelic amusement park. Who can truly grasp the Federal Reserve's real intentions?

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BearMarketSurvivor

· 11h ago

Haha, it's the same old trick, the Federal Reserve is still playing so well. --- Once the printing press starts, shrinking the balance sheet becomes expanding it, playing word games skillfully. --- Once you see through this routine, you'll know how they play; liquidity comes, and the coins naturally rise. --- The problem is, when can we just sit back and win? This kind of uncertainty is more uncomfortable than anything else. --- RMP is just a different name for the same old thing, probably afraid that calling it QE would be too direct. Anyway, it's still the same bad policy in the end. --- It's been seven or eight years, I've seen too many of these policy tricks—just one word: hoard. --- The Fed says tighten while printing money; can traders not be confused? Who knows what the next move will be. --- People in the crypto circle see clearly; the central bank's intentions are written all over their face. It just depends on how long the Federal Reserve can keep this up. --- The key is where the money ultimately goes; that's the real factor that determines the market trend. --- Previously BTFP, now RMP—really, just a name change to continue the blood transfusion. I'm too familiar with this routine.

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MissedAirdropBro

· 11h ago

Same old trick... The Federal Reserve changes its disguise to continue printing money, really treating us like fools. Talking about tightening, then turning around to inject liquidity, just let these politicians perform their戏. RMP is just QE2.0, no need for all those fancy names, just say it directly. The repeated liquidity fluctuations are something we're used to; it all depends on how the coin prices react. This time, money is flowing back into traditional finance; our crypto circle will have to wait to eat the leftovers. Hayes is right, these people are really good at playing word games. Getting called out so quickly—first saying they would shrink the balance sheet, now they want to expand again, masters of manipulating indices. I'm just going all in; anyway, it's all about printing money. Early morning trades bring early gains. The tricks of the Federal Reserve are really endless, but in the end, retail investors are the ones paying the bill. It's truly incredible—pretending to do one thing under a certain name, but actually doing another. What's the point of this game?

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Rekt_Recovery

· 11h ago

ngl the fed's playing 4d chess while we're all just trying to not get liquidated again... sounds familiar from my leverage ptsd days lol. same playbook, different branding = more copium for the market fr fr

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MagicBean

· 11h ago

Changing the soup but not the medicine, the Federal Reserve's tricks are played very skillfully Basically, they're just afraid that crypto investors won't have money to spend RMP is just a disguise for QE, anyone who believes it is naive This wave of market conditions will benefit for a period of time Arthur Hayes was right this time, they are indeed printing money Again with the same old tricks? I just want to know when we can see through it clearly Federal Reserve: I am shrinking the balance sheet and expanding it at the same time, don’t ask me how I do it Liquidity games, in the end, retail investors are the ones who take the hit These policies are back and forth, traders have long been numb 2024 has already passed, and they are still playing the old BTFP tricks, where is the creativity?

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