History rarely repeats itself exactly, but it often feels familiar at certain key moments. Last month's Federal Reserve actions are a perfect example — on the surface, injecting liquidity, but behind the scenes, continuously draining the market through reverse repurchase agreements. The result? Net liquidity actually shrank, and the crypto market responded with a decline.

This gives us a sobering lesson: never be fooled by "superficial actions." Whether the Fed is pumping or withdrawing liquidity depends not on how much money is injected at once, but on the true "net change in funds." Subtracting the drain from the injection, this net figure is the key to market rises and falls.

As the year comes to an end, the Fed is likely to operate frequently — both adding and draining liquidity. Short-term volatility will definitely increase. What does this mean for crypto investors? It means "pseudo easing" is everywhere. Seeing a news story about liquidity injection and rushing to increase positions? Just wait to be caught in the subsequent drain.

The trends of leading assets like BTC and ETH are often direct reflections of these policy battles. The market is never short of opportunities; what’s truly scarce is risk awareness. Until liquidity signals are fully clear, a cautious attitude can protect your principal.