According to multiple financial reports from CoinDesk, YCharts, BeInCrypto, and The Tradable, the Federal Reserve conducted a massive $29.4 billion liquidity injection through repo (repurchase) operations, a mechanism used to provide short-term cash to banks and financial institutions.
CoinDesk reported that this step reflects growing stress in short-term lending markets, with the Fed acting preemptively to ensure stability. Analysts note that the scale of this injection signals underlying liquidity concerns that could ripple across equities, bonds, and digital assets.
In its analysis, YCharts described the operation as part of the Fed’s short-term liquidity management, but emphasized that it ranks among the largest repo interventions in over two decades.
Meanwhile, BeInCrypto highlighted a global liquidity expansion trend, noting that China has also increased money supply support to counter economic slowdown — a sign of a broader shift toward looser monetary policy worldwide.
The Tradable compared this injection to the dot-com bubble era, calling it the largest cash infusion by the Fed since the early 2000s, potentially fueling new waves of liquidity-driven market momentum.
Impact on Digital Assets:
Following the announcement, Bitcoin and other cryptocurrencies reacted positively, with Bitcoin prices rising as traders anticipated that increased liquidity could drive more capital toward alternative assets amid inflation concerns.
Economic Context:
The liquidity operation follows months of slowing credit growth and rising borrowing costs between financial institutions.
While the move may temporarily ease funding pressures, economists warn it could exacerbate inflation risks and distort market valuations if sustained for too long.
Sources:
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CoinDesk: “Why Did the Fed Inject $29.4B in Liquidity, and What Does It Mean for Bitcoin?” (Nov 3, 2025)
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YCharts: “Federal Reserve Repo Operation 2025”
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BeInCrypto: “Fed & China Boost Global Liquidity”
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The Tradable: “Fed Pumps $294B Into Banks in Biggest Liquidity Move Since Dotcom Era”
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El-Balad: Official liquidity data report (Nov 2025)