Bitcoin Battles $50k Price Target As Fed Adds $13.5b Overnight...

Bitcoin liquidity cues received a clear signal from the Fed, as the end of QT sparked the second-largest overnight liquidity injection since the COVID-19 era.

Bitcoin (BTC) gained a classic macro bull signal into Tuesday as the US Federal Reserve injected $13.5 billion of liquidity.

Fed liquidity operations send a message to crypto and risk assets as the Dec. 1 total rivaled the COVID-19 era.

Markets still see interest rates coming down despite rumors over Japan.

Analysis warns that Bitcoin could still be a leading indicator of a major risk-asset “reversion.”

Fed data uploaded to X by analytics platform Barchart confirmed a snap end to the latest round of quantitative tightening (QT).

Bitcoin and risk assets can enjoy a fresh liquidity impulse as the Fed officially stops shrinking its balance sheet this month.

The latest figures covering overnight repurchase, or repo, transactions show that $13.5 billion of liquidity entered the banking system on Tuesday.

That number stands out, being the second-largest overnight tally since the beginning of the COVID-19 pandemic, which sent stock markets worldwide crashing.

“Probably Fine, carry on,” it commented, noting that the total even surpassed the height of the dotcom bubble.

Source: CoinTelegraph