Fed to Inject $6.8 Billion Into Markets in First Repo Since 2020 — Why Crypto Is Paying Attention

The Federal Reserve is scheduled to inject approximately $6.8 billion into financial markets on December 22, 2025, through a repurchase agreement (repo), marking its first liquidity-adding repo operation since 2020, following $38 billion deployed over the preceding ten days for year-end liquidity management. Repo operations are routine tools used by the Fed to lend cash against collateral, ensuring sufficient market liquidity and preventing short-term interest rate spikes. Although experts stress this is not Quantitative Easing (QE) because the cash is temporary and self-correcting, the increased need for reserves signals tighter underlying liquidity conditions, especially around year-end regulatory requirements. Crypto investors view this liquidity injection positively, as greater market liquidity historically correlates with favorable conditions for risk assets like Bitcoin and other cryptocurrencies, despite the Fed maintaining a restrictive policy aimed at reducing inflation to 2%.

(Source：BeInCrypto)