The US Federal Reserve injected approximately $125 billion into the financial system through reverse repo operations over the past week, marking one of the largest liquidity infusions in 2025. This move indicates a partial reversal of the FED's previous tightening policy, as it increases the money supply within the US economy.
Analyst Cauê Oliveira highlighted that this surge in liquidity, alongside a pause in quantitative tightening or potential debt ceiling adjustments, could impact Bitcoin's price. Historically, Bitcoin has shown a correlation with periods of monetary expansion, suggesting potential market reactions to the FED's recent actions.
FED Injects $125 Billion in Liquidity Amid Policy Shift
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