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The U.S. Federal Reserve has started the new year by adding money to the financial system through its overnight repo operations. According to the New York Fed, the central bank injected $22.8 billion, including $19.5 billion in Treasury bills and $3.3 billion in mortgage-backed securities.
This was the first liquidity injection of the year, coming after a very active end to 2025. On December 31, the Fed added $74 billion, the largest single repo operation last year. That move helped support risk assets, including Bitcoin and the wider crypto market.
🚨THE FED INJECTS LIQUIDITY OVERNIGHT
The Fed injected $18.5 BILLION via repos and drained $5.7 BILLION via reverse repos, signaling short-term funding support. pic.twitter.com/coifpzaOOp
— Coin Bureau (@coinbureau) January 3, 2026
Bitcoin has opened the year strongly. The price briefly moved above $90,000, reaching a new yearly high. This recovery comes after a sharp market drop late last year, which started after the October 10 crash. Rising liquidity and improving sentiment have helped push prices higher.
Bitcoin Consolidates Above $90,000 as Bullish Forecasts Grow
Some analysts remain very bullish. CryptoQuant says Bitcoin could reach $170,000 this year if expectations for easier financial conditions grow and ETF inflows remain steady. While the Fed is unlikely to cut interest rates soon, it has already begun Reserve Management Purchases (RMP).
BitMEX co-founder Arthur Hayes believes these purchases could still drive a strong Bitcoin rally. Bitcoin has also stayed stable despite rising global tensions. Reports about U.S. actions against Venezuela briefly shook markets. Bitcoin dropped to around $89,000 but quickly recovered and is now trading just above $90,000.
U.S. Attorney General Pam Bondi confirmed that Venezuela’s President Nicolás Maduro and his wife have been indicted in New York on serious criminal charges.
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