U.S. banking move triggers fresh momentum in Bitcoin and other major digital assets.
The Federal Reserve has pumped $13.5 billion into the U.S. banking system through overnight repos, marking the second-largest liquidity injection since the pandemic and surpassing even interventions seen during the Dot-Com Bubble.
The move aims to stabilize credit markets and boost investor confidence. And it appears to be giving cryptocurrency markets a lift.
Crypto Market Reacts
Bitcoin (BTC) jumped more than 9% over the past 24 hours, briefly topping $94,000 and currently trading around $92,900. Ethereum (ETH) surged over 10%, climbing past $3,000.
Overall, the crypto market capitalization rose 7.1% to $3.15 trillion, with all major cryptocurrencies in the green.
CoinGlass reports that the Coinbase BTC premium has turned positive again, suggesting renewed retail and institutional appetite. On-chain activity remains robust, with $6.9 trillion settled over the last 90 days.
Blockchain analytics firm Glassnode notes that Bitcoin faced rejection at $93,000 last week, but as it attempts to retest this level, forced buybacks by traders betting against the market are adding momentum.
Meanwhile, the network has absorbed $732 billion in new capital this cycle, with volatility declining, signaling a more stable, institutional-driven market.
According to Glassnode, digital versions of real-world assets (RWA) grew from $7 billion to $24 billion over the past year, reflecting growing institutional interest.
On-chain settlement activity remains strong, with Bitcoin and stablecoins handling $6.9 trillion over the past 90 days, comparable to or exceeding Visa and Mastercard volumes.
Why This Matters
The Fed’s $13.5 billion liquidity injection comes as markets show renewed activity.
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