FED's Year-End Liquidity Bomb: $74B Injected! 🚨
The Fed dumped $74.6B via repo on Dec 31st, the largest injection since COVID peaks, split between $31B in Treasuries and $43B in MBS.
This caused SOFR rates to spike to 3.87%, clearly signaling short-term cash crunch stress in money markets.
Crucially, rates normalized immediately after, suggesting this was temporary pressure, not systemic failure. The Fed is slowly ramping up liquidity injections again. This subtle shift is huge for $BTC positioning. 🧐