Recent statements by Federal Reserve Chair Jerome Powell have sparked market attention. According to the latest policy signals, the Fed will maintain a high level of Treasury purchases in the coming months, involving $40 billion in short-term Treasury acquisitions and MBS reinvestment operations each month. These measures essentially mark the official start of a gradual quantitative easing policy, leading to a significant shift in the market liquidity environment.

Wall Street institutions have responded quickly, raising their full-year 2026 bond purchase forecasts to around $525 billion. What does this number imply? It indicates that a continuous flow of funds is being released into the financial system. When central banks actively loosen liquidity, capital naturally seeks higher yields—assets such as stocks, bonds, cryptocurrencies, and other risk assets will all become targets for this capital.

From a market cycle perspective, the timing of this easing policy's initiation is noteworthy. The first quarter of 2026 is likely to become a critical turning point, as market sentiment, fundamentals, and liquidity conditions are all brewing for change. Historically, whenever central banks release large-scale liquidity, mainstream cryptocurrencies like BTC and ETH often encounter phased opportunities.

Of course, market participants' reactions are clearly divided. Large institutional funds are quietly positioning themselves, and institutional investors are adjusting their holdings in preparation to enter the market. Meanwhile, retail investors typically wait until the trend has already clearly risen and key resistance levels are broken before realizing a trend change, often missing the optimal entry point.

From an investment strategy perspective, understanding market inflection points is more important than predicting specific prices. The liquidity cycle initiated by the Fed itself is such a clear signal of an inflection point. The key to seizing this time window lies in proactive recognition rather than waiting for market consensus.