The crypto market’s $205 billion surge Wednesday was the direct effect of the under-the-radar liquidity injection by the FED.
Data confirms the Fed conducted a $13.5 billion overnight repurchase agreement (repo) operation on December 1. This intervention marks the second-largest liquidity injection since the 2020 crisis, exceeding levels seen even during the dotcom bubble.
Cointelegraph reports.
Fed's $13.5B repo op is a classic liquidity boost—historically pumps risk assets like crypto. That $205B surge aligns with macro patterns I've seen before, signaling easier money ahead. Smart to watch sentiment closely.
Things are going frothy under the surface of the US economy.