The US Federal Reserve has injected $16.81B into the system through overnight repos, and this is something crypto traders should be paying attention to. Overnight repos usually come into play when short term liquidity starts feeling tight, so this move clearly signals that stress was building under the surface. When liquidity gets a boost like this, risk assets tend to wake up, and crypto often reacts faster than traditional markets.

For the crypto market, this kind of liquidity injection is quietly bullish. Extra cash in the system improves sentiment, eases funding pressure, and encourages traders to take on more risk. That usually means higher volume, stronger bids, and better follow through on breakouts. We have seen this pattern play out many times before. Liquidity expands, markets breathe, and crypto starts moving with confidence.

This does not mean instant pumps across the board, but it does mean conditions are improving. If liquidity continues to flow, expect volatility to rise and opportunities to open up. Smart money watches liquidity first, price second. Keep an eye on it.