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& $74.6B Fed Flood — A Quiet Pivot Before 2026?

Something major just slipped under the radar. In late December 2025, banks tapped the Fed’s Standing Repo Facility for $74.6B — the largest single-day liquidity move since the Covid era. Treasuries and mortgage bonds were used as collateral, showing real stress in short-term funding markets.

This isn’t emergency QE. It’s classic year-end balance sheet management: banks tidy up, private lending tightens, and the Fed quietly becomes the lender of last resort.

Here’s the key: when stress pops up like this, the Fed usually pauses aggressive tightening. They’ve already seen where the pressure points are. Historically, that sets the stage for:

• Less hawkish policy in the near term
• More flexibility on rates and liquidity in 2026
• Lower risk of sudden funding shocks

This move isn’t an instant pump for BTC or other risk assets—but it reduces downside risk, which is often the precursor to major market rallies.

In 2026, liquidity will drive the story more than headlines. Watch the flow, watch the Fed, watch the tape.(follow MuhammadMoeez for more information).

#Crypto #Macro #LiquidityAlert #BTC #RiskAssets #FedWatch #Markets #CryptoTrading #MuhammadMoeez