The Federal Reserve suddenly injects 31 billion USD for emergency relief, but Bitcoin doesn't rise—instead, it rebounds. What's really going on?

Right at the start of the new year, the Federal Reserve quietly added 31 billion USD of "overnight emergency funds" to the banking system. This is the largest short-term liquidity injection since the mask shortage, even higher than the peak during the internet bubble years.

But first, we need to clarify: this is neither a rate cut nor QE printing money; it's purely a decrease in the willingness of banks to lend to each other. The short-term funding chain is a bit clogged, and many institutions are struggling to even roll over overnight funds—typical "emergency operations."

Normally, with more money in the market, risk assets like Bitcoin should rally. But the reality is, Bitcoin is still oscillating in place. Today, Bitcoin is around 88,600 USD, up about 1.3% during the day, but just the night before, it experienced a sharp plunge—from 89,000 USD directly down to 87,000 USD, with over 160,000 liquidations across the network. Currently, the price is nearly 30% below the October 2022 high of 126,000 USD, bouncing between 87,000 and 89,000 USD.

Why is there this "divergence"? The reasons are simple: first, the Fed's money is circulating only within the banking system and is hard to flow into the crypto market; second, everyone is still worried about high interest rates and unclear regulatory policies, so they dare not buy risky assets freely; third, after the recent sharp decline, leverage in the market has decreased, and speculators have become more cautious.

But there's good news: Bitcoin's Fear & Greed Index has risen from "Extreme Fear" back to the "Fear" zone, easing some selling pressure. For the crypto market, this 31 billion USD is more of a long-term signal—history shows that when global liquidity increases, it eventually benefits Bitcoin. The current volatility might just be a reshuffling of funds, waiting for the next move.

In the short term, the key is whether Bitcoin can break through the 90,000 USD level; in the medium to long term, watch whether the Fed continues to inject liquidity and whether that money can truly flow into the crypto market. $BTC #ETH走势分析