The Federal Reserve suddenly injected $105 billion of liquidity into the financial system last night. This scale triggered a market explosion — in terms of size, it’s the largest single injection this year and a rare "overnight liquidity flood" in recent years.

Why should we pay attention to this? Because history has given us the answer.

During the March 2020 pandemic shock, the Fed also did something similar. When the trillion-dollar stimulus policies released liquidity, where did it flow? A large part of it flooded into risk assets. Bitcoin, for example, went from $5,000 to $69,000 that year. This isn’t some mysterious phenomenon; it’s hot money looking for an exit.

This time, the $105 billion injection seems to be "stopping the bleeding," but from another perspective, it also signals that a corner of the traditional financial system is under pressure. When fiat currencies face inflation erosion, institutional investors and smart money often seek alternative assets. Over the past few years, the cryptocurrency market has grown significantly and has become a sizable "water reservoir."

The most direct manifestation is the market response — mainstream assets like Bitcoin, Ethereum, and Dogecoin surged, breaking through multiple key levels. This isn’t coincidence; it’s liquidity searching for investment directions.

Experts believe this wave of liquidity could continue to boost the crypto market’s enthusiasm over the next 3 to 6 months. When returns on traditional assets are squeezed, digital assets not controlled by central banks become a safe haven and a means of value appreciation.

The question is, is this a normal market adjustment or the beginning of a new risk accumulation? Supporters say it’s the prelude to Bitcoin’s decade-long bull market, while opponents warn of the risk of a bubble burst.

If you’re considering increasing your holdings, at least the data and logical chain are in place.