The Federal Reserve plans to inject $55 billion of liquidity into the market next week, and this move has immediately sparked widespread discussion. Some have directly associated it with a return to QE, and market reactions have been quite enthusiastic.

But it’s important to view this rationally—this operation is essentially a short-term liquidity supplement, fundamentally different from the large-scale quantitative easing policies implemented after the financial crisis years ago. The scale, duration, and policy intent are not comparable.

That said, liquidity easing indeed provides direct support to the capital markets. Both traditional stock markets and cryptocurrency markets benefit from abundant market funds. In such an environment, investors’ risk appetite often increases, and their willingness to allocate to high-volatility assets also tends to grow.

For traders focusing on mainstream crypto assets like Bitcoin and Ethereum, the current liquidity environment warrants ongoing observation. The Federal Reserve’s move may set the stage for subsequent market developments.