Federal Reserve’s Liquidity Squeeze: Will It Boost Crypto?

The Federal Reserve has seen its Reverse Repo Facility (RRP) plummet to nearly zero, a shift with potential ramifications for crypto markets. This decline suggests future Treasury issuance will directly impact bank reserves, potentially unlocking favorable liquidity conditions for assets like Bitcoin and Ethereum. Delphi Digital reports that this drastic change in the RRP balance signifies an exhaustion of a ‘liquidity buffer’ previously used to absorb heavy Treasury bond issuance.