The Fed will inject $8.3 billion in liquidity today

The Federal Reserve plans a liquidity infusion via note purchases starting tomorrow, which will increase the money supply and often boost risk assets. The US Fed is expected to add $8.3 billion in capital to support economic stability.

While the short-term effects may vary, the move to add liquidity is widely considered very bullish in the long term, especially for risky assets like crypto and tech stocks.

Such a large injection from the FED is also a sign that the central bank is committed to supporting financial markets amid continued global uncertainties. For crypto investors, this often results in increased confidence and stronger price action over time.

The data also shows the Fed will add $53.3 billion in liquidity by Feb. 12 through bond reinvestments and reserve purchases.

Total liquidity of $55.3 billion added by February 12 via bond reinvestments and reserve purchases.
QE SHOULD START EARLIER NOW! pic.twitter.com/UqDRgIAttc

– Money Monkey (@TheMoneyApe) January 19, 2026

Greater liquidity can translate into calm credit markets, reduced pressure on short-term interest rates and a favorable environment for stocks and bonds.

More liquidity, good for crypto

When the FED injects money into the system, it increases market liquidity, reduces borrowing costs, and encourages risk-taking among investors. This has historically led to rising prices of stocks and cryptocurrencies, as well as greater demand for scarce assets like Bitcoinand stronger overall investor sentiment.

Crypto thrives most in high-liquidity environments, which could push the market toward a rally as capital flows out of traditional finance.

Despite hopes for new momentum due to changes in the macroeconomic environment, the crypto market is currently in sustained decline. Over the past 24 hours, the crypto market lost over $50 million, falling to a market cap of around $3.17 trillion as BTC plunged below $91,000.

This decline has led to massive market liquidations, totaling more than $2 billion over the past two days and around $260 million over the past 24 hours, according to coin mechanism data.

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