The Federal Reserve has injected a significant sum of $29.4 billion into the U.S. banking system through overnight repurchase agreements (repos), addressing acute funding stresses and potentially impacting cryptocurrency markets. This substantial liquidity move, considered the largest since 2020 pandemic measures, aims to ease strains on banks as reserves have fallen to their lowest point in four years. The Fed’s action was spurred by concerns over Treasury settlements and quarter-end constraints, contributing to interbank lending issues and a decline in overall bank reserves to approximately $2.8 trillion. While the immediate impact of this move is uncertain, it may contribute to market stability as seen with Bitcoin (BTC) trading near $68,000 and Ethereum (ETH) hovering around $2,600, potentially leading to gains if liquidity persists. For further insights into these markets, explore options on Phemex. Notably, similar actions by the Fed in 2020 resulted in significant growth across asset classes, including cryptocurrencies. The potential for increased DeFi values remains a topic of interest, although on-chain data is yet to confirm this effect. This liquidity injection follows the Federal Reserve’s Standing Repo Facility (SRF) which acts as a safety valve to ensure adequate reserves while maintaining inflation control. The Fed Chairman Jerome Powell highlighted the SRF’s role in achieving both objectives. Disclaimer: Content provided on The CCPress is for informational purposes only and should not be construed as financial or investment advice. Cryptocurrency investments carry inherent risks, and consultation with a qualified financial advisor is recommended before making any investment decisions.