Federal Reserve provided $29.4 billion in liquidity.

Federal Reserve's Liquidity Intervention

The Federal Reserve injected $29.4 billion of liquidity into the banking system to alleviate liquidity concerns in the markets. This move aims to provide support to risk assets such as Bitcoin.

The mentioned operation is notable for being the largest transaction since the 2020 pandemic. The transaction was executed through the standby repo facility (SRF) and has provided an incentive to temporarily increase cash reserves and lower repo rates.

However, this increase in liquidity is being viewed as a short-term measure and is not seen as a sign of a shift towards a more expansive monetary policy.