{"id":8622,"date":"2025-12-06T05:11:09","date_gmt":"2025-12-06T05:11:09","guid":{"rendered":"https:\/\/bitcotasks.com\/blog\/the-13-5-billion-liquidity-injection-that-could-send-bitcoin-and-crypto-prices-flying\/"},"modified":"2025-12-06T05:11:09","modified_gmt":"2025-12-06T05:11:09","slug":"the-13-5-billion-liquidity-injection-that-could-send-bitcoin-and-crypto-prices-flying","status":"publish","type":"post","link":"https:\/\/bitcotasks.com\/blog\/the-13-5-billion-liquidity-injection-that-could-send-bitcoin-and-crypto-prices-flying\/","title":{"rendered":"The $13.5 Billion Liquidity Injection That Could Send Bitcoin And Crypto Prices Flying"},"content":{"rendered":"

Bitcoin has been started to show up in prices, with the total crypto market cap climbing more than $250 billion from its $3.016 trillion low on December 2.<\/p>\n

What Happened: The Liquidity Injection And Why It Matters<\/h2>\n

After officially bringing its multi-year quantitative tightening (QT) program to an end, the central bank followed up with a $13.5 billion<\/a> overnight repo operation, funneled through the New York Fed. Banks brought $13.5 billion in Treasuries to the Fed, the Fed accepted all of it, and instantly injected $13.5 billion of fresh reserves into the system.<\/p>\n

The move, which is the second-largest liquidity injection since the COVID-19 crisis, effectively puts an end the steady shrinkage of bank reserves that has persisted for years, easing pressure on short-term funding markets and signaling a more accommodative liquidity environment.<\/p>\n

The crypto market responded almost instantly. A handful of major assets began turning green within hours of the injection, with Bitcoin leading the charge with an instant break above $92,000.<\/p>\n

The influx was visible at a macro level as well: the total crypto market cap climbed from a December 2 low of $3.016 trillion to $3.269 trillion by December 4. A gain of more than $250 billion in under 48 hours<\/p>\n

What Investors Should Watch Next<\/h2>\n

Ending QT leads to better liquidity and often create a bullish environment <\/a>for equities and other riskier investments like cryptocurrencies. However, although a single liquidity event does not guarantee a sustained multi-month rally, this injection stands out not just for its size but for what it represents.\u00a0<\/p>\n

Related Reading: 4 Bitcoin Indicators That Led To Market Rallies In The Last 2 Years Have Returned<\/p>\n

In a CNBC interview, <\/a>Fundstrat\u2019s Tom Lee stated that the Fed\u2019s decision to stop QT will be a turning point for the cryptocurrency market. Lee pointed out that the last time the Fed ended QT, the market rose about 17% within three weeks.<\/p>\n

The previous time the Fed brought quantitative tightening to a stop was in July 2019, roughly a year after it began reducing its balance sheet. In the three weeks that followed, the S&P 500 climbed about 5%. Bitcoin\u2019s also initially rallied in the same period, but its strongest reaction came months after, towards late 2019 and early 2020.<\/p>\n

\"Bitcoin\"<\/p>\n","protected":false},"excerpt":{"rendered":"

Bitcoin has been started to show up in prices, with the total crypto market cap climbing more than $250 billion from its $3.016 trillion low on December 2. What Happened: The Liquidity Injection And Why It Matters After officially bringing its multi-year quantitative tightening (QT) program to an end, the central bank followed up with…<\/p>\n","protected":false},"author":1,"featured_media":8623,"comment_status":"","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[245],"tags":[65,111,108,73,112,113,70,71,4140,3802,3375,1904,1905,1414],"class_list":["post-8622","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-bitcoin-news","tag-bitcoin","tag-bitcoin-news","tag-bitcoin-price","tag-btc","tag-btc-news","tag-btc-price","tag-btcusd","tag-btcusdt","tag-cnbc","tag-covid-19","tag-fundstrat","tag-qt","tag-quantitative-tightening","tag-tom-lee"],"_links":{"self":[{"href":"https:\/\/bitcotasks.com\/blog\/wp-json\/wp\/v2\/posts\/8622","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/bitcotasks.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bitcotasks.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/bitcotasks.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/bitcotasks.com\/blog\/wp-json\/wp\/v2\/comments?post=8622"}],"version-history":[{"count":0,"href":"https:\/\/bitcotasks.com\/blog\/wp-json\/wp\/v2\/posts\/8622\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/bitcotasks.com\/blog\/wp-json\/wp\/v2\/media\/8623"}],"wp:attachment":[{"href":"https:\/\/bitcotasks.com\/blog\/wp-json\/wp\/v2\/media?parent=8622"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bitcotasks.com\/blog\/wp-json\/wp\/v2\/categories?post=8622"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bitcotasks.com\/blog\/wp-json\/wp\/v2\/tags?post=8622"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}