After a period characterized by a notable lack of upward momentum, the cryptocurrency market, particularly Bitcoin, appears to be at a critical juncture. A significant infusion of capital into the financial system has ignited speculation that this could be the catalyst needed to re-energize digital asset prices. This burgeoning optimism has already manifested in market movements, with the total cryptocurrency market capitalization experiencing a substantial surge of over $250 billion from its recent low of $3.016 trillion on December 2.
A Pivotal Shift: The $13.5 Billion Liquidity Infusion
Unpacking the Central Bank’s Intervention
The central bank recently concluded its multi-year quantitative tightening (QT) program, a move with far-reaching implications for global liquidity. This cessation was swiftly followed by a targeted $13.5 billion overnight repo operation, executed through the New York Federal Reserve.
In this critical maneuver, financial institutions presented $13
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