2026-01-01 15:09:06

Wow, this is something big for $BTC

The Reverse Repo chart shows how much money eligible financial institutions "park" overnight with The Fed in exchange for U.S. government securities.

A spike means institutions are placing more cash into the repo facility, which means the Fed is temporarily absorbing excess liquidity.

So if you see CTs claiming the Fed is injecting liquidity, it's actually the opposite, don't get fooled, they're just click-baiting you.

Yesterday, reverse repo spiked to $105B, a level we haven't seen since September.

While this means that The Fed is draining liquidity again, it's still a good sign. Why? Because this shows there's abundant excess cash in the financial system. And when liquidity is this flush, it tends to spill into risk-on assets like $BTC

It tells us liquidity is slowly recovering, and BTC might just get splashed next.

BTC1.18%

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.