Federal Reserve to Inject $6.8 Billion via Overnight Repo

The Federal Reserve plans to inject $6.80 billion into financial markets through repo agreements at 10 p.m. Beijing time on December 22, 2025, to manage year-end liquidity.

This routine action suggests continued market support, potentially boosting risk asset sentiment despite having no specific current impact on cryptocurrencies, as per data and expert reviews.

$38 Billion Spanning 10 Days: Federal Reserve’s Strategy

The Federal Reserve’s planned $6.8 billion injection continues its year-end liquidity management. Spanning the last 10 days, approximately $38 billion has already been injected. The Federal Reserve employs repurchase agreements, a method where cash is loaned against high-quality collateral to balance liquidity needs. Officials maintain that these actions are routine adjustments for liquidity stability, though they can impact broader financial markets.

The immediate change resulting from this operation includes stabilizing liquidity pressures as financial institutions prepare for year-end settlements. With the operation’s cap set at $6.801 billion, experts observe closely how this could ripple across financial avenues. There is no direct indication of influence on the cryptocurrency market, according to primary sources.

“The liquidity operation is a standard measure to ensure market stability, particularly around the year-end period,” stated an unnamed Federal Reserve spokesperson.

Market Observations and Historical Context on Liquidity

Did you know? In 2019, the Federal Reserve used similar repo operations to maintain reserve balances, preventing liquidity disruptions during supply strain.

Ethereum (ETH) is currently priced at $3,031.70 with a reported market cap of $365.91 billion, confirming 12.17% market dominance. CoinMarketCap notes ETH’s recent 24-hour price increase of 1.92% amid trading volumes spiking by 92.58%. The circulating supply of Ethereum remains stable at 120,695,004.11, per CoinMarketCap data.

Coincu’s research team indicates potential financial outcomes linked to governmental liquidity interventions. Historical data shows similar efforts in early 2020 relaxed monetary conditions, suggesting a foreseeable trend. Longer-term consequences require careful monitoring as changing rates, market responses, and global economics play interrelated roles.