Today: Financial markets at the end of the year receive support from the Federal Reserve.
On December 22, #الاحتياطي.الفيدرالي , ( is injecting liquidity worth approximately $6.8 billion through a repurchase operation ) to help stabilize funding markets at year-end, marking the first such repo operation since 2020, according to multiple reports.
The importance of that:
✅ Repo = Short-term liquidity ( Instant cash liquidity, Treasury bonds as collateral, reversed shortly after )
✅ Designed to prevent sudden spikes in overnight borrowing interest rates during the "transition" period at the end of the year.
✅ Cryptocurrency traders follow it because liquidity is the lifeblood of high-risk assets.
⚠️ Warning: Repo operations are temporary.
The most important question is whether the Federal Reserve will continue to rely on "technical" tools ( such as purchasing Treasury bonds ) to maintain reserve stability.
The real question here is, is this just routine maintenance or the beginning of an easier liquidity environment? 🤔 () $LTC $SOL
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On December 22, #الاحتياطي.الفيدرالي , ( is injecting liquidity worth approximately $6.8 billion through a repurchase operation ) to help stabilize funding markets at year-end, marking the first such repo operation since 2020, according to multiple reports.
The importance of that:
✅ Repo = Short-term liquidity ( Instant cash liquidity, Treasury bonds as collateral, reversed shortly after )
✅ Designed to prevent sudden spikes in overnight borrowing interest rates during the "transition" period at the end of the year.
✅ Cryptocurrency traders follow it because liquidity is the lifeblood of high-risk assets.
⚠️ Warning: Repo operations are temporary.
The most important question is whether the Federal Reserve will continue to rely on "technical" tools ( such as purchasing Treasury bonds ) to maintain reserve stability.
The real question here is, is this just routine maintenance or the beginning of an easier liquidity environment? 🤔
()
$LTC
$SOL