Original Title: "BTC Surpasses $930,000 Again, Will the Fed Inject $16 Billion to Stabilize the Market?"
Original Author: 1912212.eth, Foresight News
Since 2019, Bitcoin (BTC) has never experienced four consecutive monthly declines. Now, this "superstition" still seems to hold true. Since the price drop in October this year, BTC has continued to decline for three consecutive months, falling as low as around $80,000.
Starting from January 1st, Bitcoin's daily chart achieved a five-day consecutive rise, even surging past $93,000 on January 5th. ETH also strongly broke through $3,200. Meme coins such as PEPE, BONK, PENGU, and BOME have recently taken turns topping the list of top gainers.
According to Coinglass data, the total liquidation value of open contracts across the entire network reached $216 million in the past 24 hours, with short positions accounting for $168 million of that amount.
After remaining low for more than 3 months, the Fear & Greed Index has today rarely risen to 42, returning to a neutral market sentiment.
Global risk asset markets experienced a broad rise today, with stock markets in Japan and South Korea leading the gains. South Korea's KOSPI index surged more than 2.27% in early trading, breaking through the 4,400-point level for the first time and setting a new historical high. Japan's Nikkei 225 index jumped over 1,100 points in early trading, coming within 2% of a record high. In China, the Shanghai Composite Index opened with a 0.46% increase, approaching the 4,000-point level. The Hang Seng Index opened with a 0.09% rise.
U.S. stock futures showed gains, with the S&P 500 futures up 0.46%, Nasdaq futures up 0.26%, and Dow Jones futures up 0.58%. Precious metals surged sharply, with spot gold breaking through 4,420 U.S. dollars per ounce, gaining more than 2% in 24 hours. Spot silver also rose above 76 U.S. dollars per ounce, surging 4.5%.
Is the big rebound of copycat products coming?
The Federal Reserve injects $16 billion in liquidity by the end of 2025.
Cryptocurrencies led by BTC are closely linked to global market liquidity. When liquidity is low, prices find it difficult to rise significantly; when liquidity is abundant, prices can continue to recover.
On December 30, 2025, according to Barchart data, the Federal Reserve injected $16 billion into the U.S. banking system through overnight repurchase agreements, marking the second-largest liquidity injection since the COVID-19 pandemic.
This move is typically viewed by the market as a supportive signal from the Federal Reserve in response to potential banking liquidity shortages or financial stress. Although the chart shows a recent surge in liquidity injections, the overall trend reflects a shift toward accommodative monetary policy. In the cryptocurrency market, such liquidity injections often stimulate a recovery in risk appetite, as cheap capital tends to flow into high-risk asset classes, pushing crypto asset prices higher. Investors may interpret this as the Fed's reluctance to allow a hard economic landing, thereby boosting market confidence and avoiding more severe risks of recession.
On December 31, Arthur Hayes, co-founder of BitMEX, stated that liquidity in the cryptocurrency market may have hit a bottom in November and is slowly recovering, indicating that it's time for cryptocurrencies to start rising.
Jens Naervig Pedersen, a foreign exchange and interest rate strategist at Dansk Bank, stated in a report that global market liquidity is expected to remain light this week but may improve next week. The strategist noted, "Looking ahead, market liquidity should improve next week as more economic data becomes available." Key data to watch next week includes important U.S. labor market indicators, such as the December nonfarm payrolls report and the ISM survey, which will be released on January 9. During year-end periods, market liquidity is typically low due to many market participants taking holidays or closing out positions.
Large Net Inflows for BTC and ETH Spot ETFs at the Start of the Year
After a period of poor performance lasting several months, Bitcoin spot ETFs saw a net inflow of $355 million on December 30, followed by another net inflow of $471.14 million on January 2.
The magnitude and momentum of its sudden increase in net inflow are relatively significant.
Regarding ETH spot ETFs, there was a net inflow of $67.84 million on December 30, and it reached $174.43 million on January 2, setting a new daily net inflow record since December of last year.
The ETF data performance of both parties still requires continued observation, but the net inflow at the beginning of the year has a significant positive effect on boosting cryptocurrency prices.
What about the future market?
JackYi, founder of Liquid Capital, posted on January 3rd, saying, "Before the bull market in 2026, short sellers who cover their positions early will suffer small losses, while those who wait will face massive losses. Anyone still bearish in the current market is either just talking nonsense or will become cannon fodder. After experiencing more than a month of consolidation, the bulls will surely regain confidence. Pessimists are always right, but optimists always move forward."
On the same day, 10x Research also posted an article hinting at a potential structural rebound in the market. "Important changes are taking place beneath the surface of the cryptocurrency market. As Bitcoin's dominance begins to decline, our models have detected key turning signals historically associated with a shift from defensive to opportunistic positioning. What makes this cycle noteworthy is not individual tokens or narratives, but the broad emerging pattern of cross-validation forming between major coins and selected altcoins. Momentum effects, relative performance, and market participation are beginning to resonate, and traders should not overlook this."
10x Research states that the current environment is not one of broad-based gains, and it is not advisable to passively wait. The next phase will test more strictly one's discipline, strategy rules, and active position management. Clear risk control will become the key factor distinguishing profitable participants from market noise. While most investors wait for headline news to indicate direction, traders should focus on market structure and signal validation.
Analysts from blockchain analytics platform Santiment noted that sentiment among cryptocurrency market participants on social media was strong at the beginning of the year, but warned that further market gains depend on whether retail investors can remain rational. "We need retail investors to maintain a certain level of caution, a certain amount of pessimism, and a certain degree of impatience," said Santiment analyst Brian Quinlivan in a YouTube video posted on Saturday. While other crypto sentiment indicators showed fear among market participants, Quinlivan said Santiment's social media data pointed in the opposite direction. "The current sentiment is very positive," he said, "which is usually a bit concerning, but this time it might just be a normal rebound after the holidays." Quinlivan expressed that he was not overly worried about a surge in FOMO (fear of missing out) sentiment, but added that such sentiment could flood the market if Bitcoin quickly rises to $92,000.
However, the data chart also reflects some pessimism in the market.
Recently, Glassnode tweeted that the slowdown in inflows coincided with long-term holders increasing their efforts to realize losses. As BTC prices fluctuate within a narrow range, this situation is gradually becoming apparent. This reflects investors growing increasingly fatigued over time, a common characteristic during prolonged bear market phases.
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