After the US Fed's announcement of buying short terms treasuries worth $40B per months for several upcoming months, recently the Fed has injected $74.6B in overnight repo liquidity, to the BOJ meeting, is being treated as a “market signal". Bitcoin’s muted move aligned with the Federal Reserve’s $74.6 billion overnight repo injection, marking the largest single-day repo operation since the 2020 COVID shock.
After the 4 year cycle of BTC got broke, BTC just closed its first post-halving year in the red, while altcoins continued to lag behind BTC, leaving investors questioning the usual post-halving playbook. Markets are now betting that liquidity injections will spark a rally. And yet, the silver market shows this move isn’t just a coincidence. Rather, it’s about timing, reflecting the broader liquidity cycle at play.
The Fed’s repo injection hit silver (the most paper-leveraged market) the hardest, revealing stress in the system. As a result, the market is now pricing this liquidity event as a key driver for Bitcoin’s explosive 2026 run. Also, the upcoming Jobs and Employment data will impact the Fed's liquidity and interest rate decision crucial for BTC and stock market.
As of now, at the time of writing this article, BTC is being trade around $92.7k and has seen jump of 5.4% in its price over the past week and stands at a market capitalization of $1.851 Trillion.