2025-12-25 14:20:13

The market has been a bit strange these past two weeks. Do you feel it too?

Public records from the New York Fed show that over the past ten days, the Federal Reserve quietly injected $38 billion into the financial system through repurchase agreements. Logically, this money should have sent Bitcoin soaring, but what happened? Bitcoin is still bouncing around the $90,000 mark, and those expecting "Fed liquidity injections = crypto market frenzy" are starting to lose confidence.

The Fed claims this is "technical operation," but liquidity is liquidity—where will these $38 billion actually flow? That’s the real question worth pondering.

**The US dollar market is experiencing a "bloodbath"**

The earliest warning indicator is SOFR (Secured Overnight Financing Rate), known as the "heartbeat" of the dollar. Recently, it has been breaking through the Fed’s interest rate ceiling consecutively, something that normally wouldn’t happen in a typical year.

Even more alarming is that the Fed’s reverse repo scale has plummeted from $2.4 trillion in April 2023 to less than $15 billion. Interbank liquidity is approaching a critical point.

This scene feels familiar. In September 2019, SOFR shot up to 10 overnight, and the Fed was forced to inject $500 billion urgently to stabilize the market. While the current situation isn’t as severe, the alarm has definitely been sounded.

**Why hasn’t the crypto market reacted this time?**

Liquidity injections → rising crypto prices. This logic has worked repeatedly over the past few years. But this time, it seems different. Bitcoin is like under a spell, repeatedly hovering around $90,000, as market participants watch these $38 billion as if witnessing a "fake-out."

Maybe the market’s absorption capacity has improved, or perhaps funds are truly flowing elsewhere. Or maybe, our understanding of liquidity is still not thorough enough.

BTC0.11%

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StakeWhisperer

· 7h ago

3.8 billion liquidity injection has no reaction in the crypto circle, it feels like money has been absorbed by traditional finance Really, this time the rhythm is completely off, usually such moves would send coins soaring Sitting at 90,000 is really uncomfortable, either break above 95,000 or fall below 90,000 The fact that SOFR surpasses the upper limit is more dangerous than the liquidity injection itself, the Federal Reserve is plugging the loopholes Reverse repurchase agreements dropped from 2.4 trillion to 150 billion, this number clearly shows liquidity is going to hell That scene from 2019 is still vivid in my mind, will it happen again? They say it's a technical operation, but I think they’re just waiting until the fire reaches their butt before releasing liquidity The crypto market's resilience has improved, but this time it's really a bit strange, either the shorts win or the whales are brewing a big move Liquidity, to put it simply, is where the money flows. The current problem is that it all flows to Wall Street Strong market digestion? I think participants are just too scared of being trapped

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MidnightMEVeater

· 7h ago

Good morning, 3 a.m. | 38 billion really flowed in, but Bitcoin is still sleepwalking. This is the most heartbreaking part. --- Why does it feel like everyone is playing sandwich attacks on the same target, dancing in the liquidity trap? --- Reverse repurchase agreements dropped from 24 trillion to 150 billion. This is not a liquidity shortage; it's a sheep slaughter. --- The liquidity infusion law has failed. Funds have either gone to dark pools or we are all being reverse-culled by algorithms in the robot paradise. --- The $90,000 cap has been here too long. It feels like someone is manipulating the market, waiting for enough people to despair before moving. --- The Federal Reserve says it's a technical operation? Ha, every time they say that, they're setting a trap. --- Why is there no reaction? The problem isn't with the coin; it's that the main players are harvesting small miners' tips and cutting the leeks. --- I've seen SOFR breaking the upper limit before. After the 2019 incident, there was a bloodbath. This is just the prelude.

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wrekt_but_learning

· 7h ago

38 billion dollars is this? The crypto community has long been desensitized; do whatever you want. I really don't know where the money went. It feels like the Federal Reserve is fooling us this time. Even with SOFR crashing, how can it stay stable? BTC, when will your binding spell be lifted? Wait, did that liquidity really flow into crypto...? I don't feel a thing. Just sit tight and wait, I'm used to it anyway. Let's see if this time they really loosen the money supply or if they're just tricking us into buying in again.

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