#加密市场反弹 The Federal Reserve panicked, is the balance sheet reduction about to end? The reserve deposits of the Federal Reserve have fallen to the warning line of 12.2%. Good news has arrived; the Federal Reserve may end the balance sheet reduction process ahead of schedule, and the difficult days are finally coming to an end.

The Federal Reserve panicked, is the balance sheet reduction about to end? The reserve deposits of the Federal Reserve have fallen to the warning line of 12.2%. Good news has arrived; the Federal Reserve may end the balance sheet reduction process ahead of schedule, and the difficult days are finally coming to an end. Global liquidity will once again be abundant, and the strong dollar may reach an inflection point, providing a boost to digital currency assets.

A very important piece of data was just released: the bank reserve deposits on the Federal Reserve's balance sheet have officially fallen below $3 trillion. As of the week of January 1st this year, U.S. bank reserve deposits reached $2.89 trillion, dropping to the lowest level since 2020. When this reserve deposit is divided by the total assets of U.S. commercial banks, this ratio has already fallen to the warning line of 12.2%.

If it officially falls below 12%, the Federal Reserve will definitely have to take action. Why has the bank reserve suddenly dropped so much? This is because at the end of the year, the Federal Reserve needs to audit and supervise the asset conditions of each bank. Banks will urgently clear away many complex financial instruments they have on hand. At this time, banks will be selling assets in the financial market, exchanging them for currency, and putting them back into the Federal Reserve's reverse repurchase account. It is essentially the banks also starting to reduce their balance sheets. The Federal Reserve is currently also reducing its balance sheet by about $50 billion each month. So at this time, banks are also reducing their balance sheets along with the Federal Reserve, which naturally leads to a significant decrease in market liquidity.$SOL