Is the Federal Reserve pumping liquidity again? $16 billion injected into the market... This is the most frequently appearing news keyword I've seen recently😅

Honestly, I haven't been in the crypto space for long, so I'm a bit confused about the concept of "pumping liquidity." After looking into it, I understand that it simply means the Federal Reserve is throwing money into the market to increase liquidity. Some experts say this is the second time they've done this since the pandemic, and after the first time, a bull market followed?

This makes me a little excited but also a bit nervous... because I saw a comment saying that if the price of coins rises later, with institutions locking in large amounts of BTC and ETH, the bears might be "forced to cover." What does that mean? What does a forced short squeeze imply? Does it affect us small retail investors?

I feel that the Federal Reserve's policy moves really can influence the overall direction of the crypto market, something I hadn't realized before. Can knowledgeable experts briefly explain the possible future market performance? I want to learn more now so I won't be completely clueless when the market moves😂