US Federal Reserve (Fed) is preparing to provide short-term resources of $6.8 billion to the financial system on December 22, 2025, in order to alleviate the year-end liquidity squeeze. The transaction will be carried out through the repo mechanism and marks the first repo injection of this scale since 2020. cryptocurrency marketThe development is read as a “liquidity increase” signal that can support risk appetite. The information that a total of 38 billion dollars of additional liquidity was provided in the last 10 days further strengthened the expectations.
How Could $6.8 Billion Repo Injection Affect Cryptocurrencies?
Putting cash into the market through repo allows banks to access short-term funding in exchange for collateral such as Treasury bonds. Since the cash here is quickly repaid, it does not imply permanent monetary expansion. Again cryptocurrency investors believe that when funding conditions are relaxed in the system, stress decreases and Bitcoin 
$89,641.92 He emphasizes that the demand for risky assets such as may increase.
barchart‘of X Market analysts evaluating the post share that the $6.8 billion injection planned for December 22 may ease the year-end tension. In the same evaluation, it was stated that although the total injection of $ 38 billion in the last 10 days was seen as routine, it was considered a sign of a possible upward cycle on the cryptocurrency front.
Analyst Money Ape In his assessment of the issue from his account, Rekt Fencer He suggested that the return of liquidity is more aligned with beginnings rather than cycle peaks. The common denominator of the comments is that optimism on the cryptocurrency side can quickly strengthen when funding eases.
Do Repo, QT’s End and Interest Rate Cut Tell the Same Picture?
The Fed officially ended quantitative tightening (QT) as of December 1, 2025. With this repo It processes transactions differently than QT. While repo provides temporary cash in exchange for collateral, QT/QE transactions are linked to whether the central bank’s balance sheet grows permanently. ImNotTheWolfsince the repo operation is not QE and has a reimbursable nature, coinage He stated that it should not be counted, but still pointed out that liquidity conditions remained difficult.
On the timing side, the repo step is the Fed’s last interest rate reductionIt came to the agenda right after. As it is known, the Fed reduced the policy rate by 25 basis points to the range of 3.5–3.75 percent and made its third interest rate cut in 2025.
In this context, repo injection is positioned as a tool to manage year-end funding needs rather than a claim for permanent balance sheet expansion. On the cryptocurrency side, liquidity relief, even temporary, is viewed as a catalyst that may affect pricing behavior in the short term.
