The US Federal Reserve injected more than $40 billion in liquidity into the banking system through repurchase agreements (repos) in December, the institution's second largest intervention since the coronavirus crisis.
On December 30 alone, $16 billion in liquidity entered the market, a figure that has once again heated up the debate about hidden pressure in the funding market.
At first glance, the Fed's money injection seems like a normal move to control interest rates and provide liquidity at the end of the year. But many analysts believe that when banks consistently rely on the Fed, it could be a sign of extreme caution and hidden pressure on their balance sheets.
At the same time, data shows that global liquidity has reached an all-time high, a growth that has been driven in part by channels similar to unofficial money printing.
Despite these signals, Bitcoin has not yet shown a strong reaction, and its price is fluctuating in the range of $85,000 to $90,000.
The main reason for this behavior is the conflict between increased liquidity and a prolonged high interest rate policy, which has made traders more cautious.
For retail investors, this situation means the market has no clear direction at the moment, but if liquidity flows change, a rapid and surprising move for
Bitcoin's price is possible.
