Recently, many people have been excited about the actions of the Federal Reserve. The Fed plans to buy $8.165 billion in short-term government bonds, and many are already calculating which cryptocurrencies to add to their positions. But here’s a cold splash of water—this move is not the kind of market bullishness you might think, and getting the direction wrong could likely lead to losses.

What is the essence of this operation? Simply put, it’s "technical liquidity management." Many habitually confuse it with QE (quantitative easing), but these are two completely different things. The former is like giving the market a fever reducer, while the latter is like pouring chicken soup to boost health. How big is the difference? Let’s look at two core points.

First, the purpose. This purchase of short-term government bonds aims to stabilize short-term interest rates and prevent abnormal fluctuations in the money market—like patching a leaking water pipe at home to prevent flooding. In contrast, QE is when the central bank injects large amounts of liquidity to rescue the economy during a slowdown, with completely different intensity and intent.

Second, the impact on the crypto market. Large-scale liquidity injections like QE tend to cause funds to flow everywhere, easily fueling our highly volatile market. But this kind of technical operation is different; the capital flow is "targeted stabilization," and it’s unlikely to flow into the crypto market. At most, it might help soothe market sentiment somewhat, but the actual catalytic effect remains limited.

So, instead of rushing to increase positions based on this news, it’s better to clarify the logic first. My seven years in this space have taught me that the easiest trap to fall into is confusing concepts—mistaking stabilization operations for stimulative policies.