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The US Federal Reserve started the new year by pumping money into the financial system through its overnight repo operations. According to the New York Fed, the central bank injected $22.8 billion, including $19.5 billion in Treasury bills and $3.3 billion in mortgage-backed securities.
This is the first liquidity injection of the year, after a very active end of 2025. On December 31, the Fed added $74 billion, the largest repurchase transaction of last year. The move helped support risky assets including Bitcoin and the broader crypto market.
🚨THE FED INJECTS LIQUIDITY OVERNIGHT
The Fed injected $18.5 TRILLION via repos and drained $5.7 TRILLION via repos, signaling support for short-term funding. pic.twitter.com/coifpzaOOp
– Coin Bureau (@coinbureau) January 3, 2026
Bitcoin opened the year strong. The price briefly topped $90,000, hitting a new yearly high. This recovery comes after a sharp market decline late last year, which began after the October 10 crash. Increased liquidity and improved confidence have helped push prices higher.
Bitcoin Consolidates Above $90,000 as Bullish Forecasts Rise
Some analysts remain very optimistic. CryptoQuant says Bitcoin could reach $170,000 this year if expectations of easier financial conditions increase and ETF inflows remain stable. Although the Fed is unlikely to cut interest rates in the near future, it has already begun reserve management purchases (RMPs).
Arthur Hayes, co-founder of BitMEX, believes that these purchases could still generate a strong rally in Bitcoin. Bitcoin has also remained stable despite rising global tensions. News of US actions against Venezuela briefly shook markets. Bitcoin fell to around $89,000, but quickly recovered and is now trading just above $90,000.
United States Attorney General Pam Bondi has confirmed that Venezuelan President Nicolás Maduro and his wife have been indicted in New York on serious criminal charges.
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