Fed is adding liquidity again, but this is not stimulus. It’s a sign of stress under the surface.
The balance sheet is up, repo usage is heavy, and the Fed is holding more mortgage assets than Treasuries. That usually means banks need cash just to keep markets running, not to take risk.
At the same time, U.S. debt is rising faster than growth, interest costs are exploding, and the Fed is slowly becoming the buyer of last resort. China is also injecting liquidity — another sign this is global pressure, not growth.
Gold hitting highs tells the real story: money is moving to safety.
Historically, the pattern is clear:
Bonds crack → funding tightens → risk assets fall → crypto gets hit hardest.
This doesn’t mean panic — but it does mean stay cautious.
Not every liquidity move is bullish
#MarketRebound #BTC100kNext? #BTCVSGOLD $BTC
