Federal Reserve's $6.8B Liquidity Injection Pushes Bitcoin Above $90K

Ahead of the weekly opening in U.S. stock market, Bitcoin (BTC) swiftly surged past the $90,000 mark for the first time in the past two weeks, coinciding with the Federal Reserve’s scheduled overnight repurchase agreement (repo) operation injecting up to $6.8 billion into financial markets. 

At the time of publishing, Bitcoin was trading at $90,250, surging 2.20% in the past 24 hours, and a 24 hour trading volume of $29 billion, with a market cap of $1.8 trillion—as per CoinMarketCap data. 

Bitcoin had been consolidating in the high $88K earlier in the session, struggling below the psychological $90,000 barrier amid lingering macroeconomic uncertainty. The spike represented a notable push, driven by amplified moves in thin liquidity typical of the holiday season. 

Following Bitcoin, Ether (ETH) has also spiked nearly 3% to $3,060, showing significant strength among all other altcoins. Other leading altcoins—including BNB, SOL, DOGE, and ADA—have also shown noteworthy gains in the past few hours. 

Bitcoin reclaims $90K but risk still lingers

The latest move also revives hopes for a “Santa Rally,” with analysts noting strong support from institutional purchases and options positioning. However, resistance remains firm near recent highs, and a sustained break could target $92,000–$95,000 if momentum holds. 

Fueling the market optimism, various crypto analysts have shared their positive stance on Bitcoin’s potential upper side movements. Ted Pillows, a renewed crypto personality, analyzes that the bullish RSI divergence has emerged on Bitcoin’s three-day chart, where the Relative Strength Index (RSI) forms higher lows while prices dip toward the $89,000 level. This signals toward weakening downward momentum. “When this happened the last 2 times, Bitcoin formed a bottom,” trader Ted noted on X. 

However, the downside risk still lingers as the crypto market is navigating through macro tension, with spot Bitcoin ETFs witnessing $497 million in outflow last week. Moreover, the whale momentum around Bitcoin has also slowed down, hinting towards cooling on-chain activities following dramatic volatility in Bitcoin and other leading cryptocurrencies in the past two months. 

As per discussions on X, the U.S. Federal Reserve conducted an overnight repo operation on December 22 with a maximum offering of $6.801 billion, accepting bids to provide temporary cash to primary dealers against Treasury collateral. This technical measure addresses typical year-end strains where banks hoard reserves for regulatory and balance-sheet reasons, potentially spiking short-term rates. 

It’s the latest in a series of operations totaling around $38 billion over the prior 10 days, separate from the ongoing $40 billion monthly Treasury bill purchases under the Reserve Management program initiated earlier in December. 

This marks the central bank’s first such repo since 2020, aimed at easing year-end funding pressures. Crypto enthusiasts quickly linked the price spike to the liquidity boost, amplifying bullish sentiment across social media and trading platforms. 

Unlike quantitative easing, these repos are short-term and targeted, expiring the next day. Still, markets—especially crypto traders—view any added liquidity as supportive for risk-on assets. While causation is hard to prove in volatile markets, the Fed’s proactive liquidity management has coincided with renewed Bitcoin strength. It highlights crypto’s sensitivity to central bank actions. 

Also read: From April 2026, India Can Track Crypto, Emails, & Social Media

---

---