Bitcoin has been struggling to build momentum in recent weeks, and the return 
of cash into the system is raising questions about whether this could be the 
moment that changes the tone of the crypto market. That growing sense of 
anticipation has already started to show up in prices, with the total crypto 
market cap climbing more than $250 billion from its $3.016 trillion low on 
December 2. What Happened: The Liquidity Injection And Why It Matters After 
officially bringing its multi-year quantitative tightening (QT) program to an 
end, the central bank followed up with a $13.5 billion overnight repo 
operation, funneled through the New York Fed. Banks brought $13.5 billion in 
Treasuries to the Fed, the Fed accepted all of it, and instantly injected 
$13.5 billion of fresh reserves into the system. Related Reading: A Bitcoin 
Parabolic Rally Is Coming: Eric Trump Shares Why First Family Is Pro-Crypto 
The move, which is the second-largest liquidity injection since the COVID-19 
crisis, effectively puts an end the steady shrinkage of bank reserves that has 
persisted for years, easing pressure on short-term funding markets and 
signaling a more accommodative liquidity environment. The crypto market 
responded almost instantly. A handful of major assets began turning green 
within hours of the injection, with Bitcoin leading the charge with an instant 
break above $92,000. The influx was visible at a macro level as well: the 
total crypto market cap climbed from a December 2 low of $3.016 trillion to 
$3.269 trillion by December 4. A gain of more than $250 billion in under 48 
hours What Investors Should Watch Next Ending QT leads to better liquidity and 
often create a bullish environment for equities and other riskier investments 
like cryptocurrencies. However, although a single liquidity event does not 
guarantee a sustained multi-month rally, this injection stands out not just 
for its size but for what it represents. Related Reading: 4 Bitcoin Indicators 
That Led To Market Rallies In The Last 2 Years Have Returned In a CNBC 
interview, Fundstrat’s Tom Lee stated that the Fed’s decision to stop QT will 
be a turning point for the cryptocurrency market. Lee pointed out that the 
last time the Fed ended QT, the market rose about 17% within three weeks. The 
previous time the Fed brought quantitative tightening to a stop was in July 
2019, roughly a year after it began reducing its balance sheet. In the three 
weeks that followed, the S&amp;P 500 climbed about 5%. Bitcoin’s also initially 
rallied in the same period, but its strongest reaction came months after, 
towards late 2019 and early 2020. Featured image from Pngtree, chart from 
Tradingview.com

The $13.5 Billion Liquidity Injection That Could Send Bitcoin And Crypto Prices Flying

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The post Polymarket odds of Bitcoin dropping to $80K by year-end surge to 40% 
appeared first on Crypto Briefing.

Cryptocurrency price in BTC