To put it simply, what the Federal Reserve is doing is purchasing US Treasuries, but the reasoning needs to be clarified.

This is the Fed continuously buying US government bonds in the secondary market through Sovereance Operations (SOMA). Officially, it's not called QE, but the actual effect is nearly the same, which is why the market nicknamed it "Invisible QE."

Understanding it from three perspectives makes it clearer.

**First, what exactly is this money buying?**
It buys US Treasuries, purely government bonds, not stocks or corporate bonds. The Fed expands its balance sheet by absorbing Treasuries from the market, releasing liquidity.

**Second, why isn't it called QE directly?**
Because it avoids the traditional narrative of "unlimited open-ended QE." On the surface, it's about shrinking the balance sheet, stopping it, or targeted bond purchases, with the nominal goal of "liquidity management." But the end result is unchanged — foundational money keeps flowing back into the market. It's playing the same game under a different guise, just like discounts during Double 11 shopping festivals — essentially price reductions, just not openly acknowledged.

**Third, what does this mean for the market and the crypto space?**
Buying Treasuries → US Treasury yields are suppressed → risk-free rates fall → funds are forced to shift toward risk assets → cryptocurrencies and tech stocks benefit across the board.

This is indeed buying Treasuries, but from another angle, it’s a form of indirect liquidity injection. The logic for the crypto world is simple: it’s not tightening but easing the market environment.