US FED Injects $13.5B in Liquidity as Quantitative Tightening Concludes
- The U.S. Federal Reserve injected $13.5 billion through overnight repurchase agreements on December 1.
- This is the second-largest liquidity injection since the Covid pandemic, following a $29.4 billion injection on October 31.
- The latest repo operation included $12.5 billion in treasuries and $12.5 billion in mortgage-backed securities.
- Bitcoin’s price increased by approximately 2% to around $86,900 after the announcement, with trading volume up by 13%.
- MSTR stock saw a pre-market increase of about 0.68%, despite closing down by over three percent on Monday.
The liquidity injection aims to alleviate short-term funding pressures for banks, similar to conditions seen during past financial stresses like the September 2019 repo crisis.
Following this significant liquidity boost, Bitcoin’s price rebounded slightly while MSTR stock reacted cautiously amidst broader market volatility.(Source)
