The Fed suddenly halted the years-long balance sheet reduction, which is equivalent to easing the pressure on the tight global market. Previously, the Fed continuously reduced its balance sheet, making money increasingly tight in the market. Now, the halt is due to the fact that the U.S. economy cannot hold up any longer, bank funding has reached a dangerous edge, and coupled with the high fiscal deficit, it cannot bear the rising borrowing costs, which is why it had to hit the "pause button."

For the market, the short term is positive news, liquidity pressure is easing, and the crypto market is likely to welcome a rebound. However, it is important to note that the current Fed asset scale is still at a high level, and the release of U.S. economic data is delayed, leaving the market lacking clear guidance, which may increase volatility. More critically, this could be a signal that the interest rate cut cycle is about to arrive. Areas sensitive to liquidity in the crypto market are likely to react to this macro turning point in advance, making the trend in the next one or two months particularly crucial.