#数字资产市场动态 The Federal Reserve loosens the shackles of the repo tool: from passive firefighting to proactive defense $BTC

A recent move by the New York Fed has attracted attention—it has fully regularized the Standing Repo Facility (SRF) and also removed the $500 billion cap. This is not a minor adjustment but a fundamental shift in liquidity management philosophy—from passive response to proactive prevention. $ETH

Here's what’s really going on:

Previously, the SRF was like a limited fire hydrant, used sparingly. Now? It’s transformed into an unlimited flood control system. As long as institutions hold eligible collateral like Treasury bonds and knock on the door, the Fed can exchange them for cash at any time.

Why is the Fed doing this? Three reasons are hard to ignore:

**First**—The shadow of 2019 cannot be forgotten. The overnight rate once soared to 10%, and those days were tough for the market. Instead of waiting for a crisis to strike, it’s better to install a protective net in advance.

**Second**—Current pressures are immense. The large issuance of Treasury bonds requires ample liquidity to absorb it. Meanwhile, changes in trade policies are also putting pressure on the bond market, so preemptive measures are necessary.

**Third**—To create room for interest rate policy adjustments. With rate cut expectations still present, the Fed needs to maintain control over rates while ensuring liquidity doesn’t become too tight.

What does this mean for the market?

In the short term, it’s positive—liquidity-sensitive sectors like the crypto market will likely feel the relief first. Short-term interest rate volatility will be kept more tightly in check.

But in the long run, it’s important to understand: abundant liquidity may prolong inflation’s resilience and also increase moral hazard for financial institutions.

Investor strategies:

Keep a close eye on actual interest rate indicators like SOFR—that’s the true reflection of liquidity conditions. When liquidity loosens, don’t just chase the cheapest options; carefully select assets with solid fundamentals. Keep some safe-haven tools like gold on hand to hedge.

Final note: The Fed is using an "unlimited liquidity promise" to stabilize market psychology, but the cost is that its own balance sheet will face greater challenges. The more abundant the liquidity, the more covert the risks become, requiring investors to stay vigilant.