As reported by Bitjie, the U.S. Federal Reserve plans to inject approximately $6.8 billion into financial markets via a repurchase agreement on December 22, 2025. This marks the first such liquidity operation since 2020. Over the past 10 days, the Fed has deployed around $38 billion as part of its year-end liquidity management. The move aims to address end-of-year liquidity strains and recent adjustments to the standing repo facility. While officials describe the measures as routine, crypto investors view them as a positive signal for risk assets. Repurchase agreements are key tools for managing daily liquidity, with the Fed using them to prevent short-term interest rate spikes and ease capital market pressures. The operation is part of a broader set of year-end liquidity measures, including a $40 billion Treasury purchase starting on December 11. Analysts note that while the move is not quantitative easing, it reflects tighter liquidity conditions. Crypto traders have responded positively, seeing increased liquidity as beneficial for risk assets like Bitcoin.
Fed to Inject $6.8 Billion via Repo Operation for First Time Since 2020
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Summary
The Fed will inject $6.8 billion into markets via repo on Dec 22, 2025, the first such move since 2020. Over the past 10 days, it has deployed $38 billion to manage year-end liquidity. The operation supports risk-to-reward ratio for crypto and other risk assets. Traders are watching TA for crypto closely as increased liquidity could boost Bitcoin. The Fed also started a $40 billion Treasury purchase on Dec 11. Officials call the move routine, but analysts see tighter liquidity conditions.
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