The global cryptocurrency market capitalization has surged to $3.1 trillion, driven by the Federal Reserve's balance sheet nearing $6.56 trillion. This development has traders eagerly anticipating the Fed's upcoming H.4.1 report for further insights into liquidity trends. On-chain data indicates that short-term Bitcoin holders are recovering from a 'max pain' phase, with profit and loss ratios showing improvement. Additionally, the market's movement above the 50-period EMA suggests a potential shift in momentum, signaling renewed investor confidence.