The Federal Reserve (the US central bank) has a tool called "repo operations." Think of it like this: When banks or big financial companies need quick cash overnight, they can "borrow" money from the Fed by giving safe assets (like Treasury bonds) as collateral. The Fed buys those assets temporarily and sells them back the next day. This pumps extra money (liquidity) into the system.
The chart shows these repo amounts suddenly jumping up a lot in late 2025 – to over $25 billion in some days!
Why does this matter?
.More money flowing into banks and markets = easier borrowing, lower short-term interest rates staying stable.
.This extra liquidity often acts like "fuel" for risky stuff like stocks and crypto. In the past, similar Fed money injections have helped push Bitcoin and other assets higher (sometimes 15-20% gains in just weeks!).
.Just this month (December 2025), the Fed made it even easier by removing limits on how much they can lend through this tool, so they can provide unlimited support if needed.
Bottom line: The Fed is quietly adding more money to the financial system right now. That's generally bullish for risk assets like crypto!
