Bitcoin Eyes Liquidity Surge: Fed's $29B Injection and China's Record Cash Boost

2025-11-03 07:32:05

Bitcoin traders are eyeing renewed upside as the Federal Reserve injects $29.4 billion via record repo operations while China’s central bank unleashes its largest-ever liquidity boost, signaling a global stimulus wave.

Fed’s $29.4B Repo: Largest Since Dot-Com Era

The Fed’s overnight repo operation pumped $29.4 billion into the banking system, the biggest single-day injection since the dot-com bust, addressing Treasury stress and collateral shortages. This move, amid rising yields and funding pressures, aims to stabilize short-term rates and ensure market function. With reverse repos at multi-year lows, the Fed’s action counters liquidity drains, potentially easing conditions for risk assets like Bitcoin.

Repo Scale: $29.4B; largest since 2000.
Purpose: Treasury collateral; rate stabilization.
Market Impact: Eases funding; supports BTC rebound.

China’s Record Liquidity: Fueling Global Momentum

China’s central bank deployed its biggest-ever cash infusion, injecting trillions of yuan into banks to combat deflation and stimulate growth. This aggressive easing, including rate cuts and reserve reductions, mirrors global trends, with ECB and BOJ also loosening. The synchronized stimulus reduces tail risks, boosting equities and crypto as capital seeks higher returns.

Bitcoin’s Liquidity Play: Upside Potential

BTC, trading at $108,500, eyes $115,000-$120,000 on liquidity tailwinds, with RSI at 55 signaling momentum. ETF inflows of $477M and 67% institutional optimism per Coinbase reports amplify the effect. Liquidity expansions historically precede 20-50% BTC rallies, as cheaper capital flows to risk assets.

2025 Bitcoin Price Prediction: $130K-$200K Consensus

Analysts forecast BTC at $130K-$200K by year-end. Changelly sees $123,849; CoinDCX $131,500. VanEck targets $180K-$200K on ETF momentum. For investors, how to buy Bitcoin via compliant platforms ensures entry. How to sell Bitcoin and how to cash out Bitcoin offer liquidity. Sell Bitcoin for cash and convert Bitcoin to cash enable fiat conversions.

Trading Strategy: Liquidity-Driven Longs

Short-term: Long above $108,500 targeting $115,000, stops at $106,000 (2% risk). Swing: Accumulate dips, staking for 5% APY. Watch repo data; below $108,000, exit.

In summary, Fed’s $29B repo and China’s cash flood ignite Bitcoin’s liquidity race, forecasting a 2025 surge to $130K-$200K.

BTC-3.14%

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