Fed Infuses $74.6 Billion to Alleviate Year-End Liquidity Pressures
Written by Ohris M. Greyoon, Blockchain & Crypto Expert
Source: Coinmarketcap
Updated: Jan 01 2026- Liquidity Injection: On December 31, 2025, the Federal Reserve infused $74.6 billion through a short-term liquidity operation to alleviate seasonal funding pressures faced by banks during year-end financial adjustments, ensuring market stability.
- Borrowing Details: Banks borrowed against $31.5 billion in U.S. Treasuries and $43.1 billion in agency mortgage-backed securities, indicating a strong demand for liquidity, with these funds set to mature within a week.
- Bitcoin Surge: Following the operation, Bitcoin surged to $89,000, benefiting from reduced selling pressure during the holiday season, although the broader cryptocurrency market subsequently declined, impacting both Bitcoin and Ethereum values.
- Routine Operations: The Fed's intervention is characterized as a routine measure to maintain liquidity stability, with no significant market or regulatory reactions, reflecting the resilience of the financial system.
About the author
Ohris M. Greyoon
Ohris M. Greyoon holds a Master’s in Computer Science from MIT and has 10 years of experience in blockchain technology and cryptocurrency markets. A pioneer in decentralized finance (DeFi) analysis, he leads Intellectia’s Crypto News, offering cutting-edge insights into digital assets.
