Bitcoin Eyes Liquidity Race As Fed Injects $29 Billion While China Floods Markets

The Federal Reserve (Fed) injected $29.4 billion into the US banking system through overnight repo operations on Friday, the largest single-day move since the dot-com era. At the same time, China’s central bank deployed a record cash infusion to reinforce its domestic banking sector.

These coordinated liquidity moves signal a turning point for global risk assets, especially Bitcoin (BTC). Traders are closely monitoring how central banks act to stabilize markets ahead of 2026.

The Fed’s unusually large overnight repo operation followed sharp Treasury sell-offs and reflected growing stress in short-term credit markets.

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