Federal Reserve Injects $74.6 Billion Liquidity, Boosting Bitcoin Surge
Written by Ohris M. Greyoon, Blockchain & Crypto Expert
- Liquidity Injection: On December 31, 2025, the Federal Reserve injected $74.6 billion into the economy through overnight repo operations, marking the largest single-day operation this year, aimed at alleviating year-end liquidity pressures and thereby boosting market confidence.
- Bitcoin Surge: Amid reduced selling pressure, Bitcoin's price surged to $89,000, indicating a potential relief rally that not only enhances investor sentiment but also may stimulate a broader recovery in the cryptocurrency market.
- Market Dynamics Shift: This liquidity injection is closely tied to the Federal Reserve's monetary policy, particularly following recent rate cuts and new Treasury bill purchases, highlighting the interplay between traditional finance and emerging digital assets, which could influence future cryptocurrency adoption.
- Improved Investor Sentiment: Market experts noted that the cryptocurrency market capitalization has broken out of its downtrend, suggesting that investor optimism is on the rise, although the sustained effects will depend on economic and regulatory developments.
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.
