7 hour ago
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Fed Injects $13.5 Billion, Crypto Market Cap Surges by $250 Billion
The recent cessation of the central bank's multi-year quantitative tightening (QT) program has led to a $13.5 billion liquidity injection through an overnight repo operation. This move, the second-largest since the COVID-19 crisis, signals a shift towards a more accommodative liquidity environment.
- Bitcoin and other major cryptocurrencies responded positively, with Bitcoin surpassing $92,000 shortly after the liquidity injection.
- The total crypto market cap increased by over $250 billion, from $3.016 trillion to $3.269 trillion, within 48 hours.
- This liquidity boost could potentially create a bullish environment for riskier investments like cryptocurrencies.
Historically, ending QT has led to significant market rallies, as observed in July 2019 when the S&P 500 rose by around 5% in three weeks. Analysts suggest that the current liquidity event might mark a turning point for the cryptocurrency market.
