- Crypto market pumps as Fed injects $13.5 billion into the banking system overnight.
- The price of BTC surges back up over $90,000 in under 24 hours.
- This has reignited positive sentiment for a continued bull market.
As we enter deeper into the first week of the last month of the year, the prices of promising crypto assets are showing signs of recovery. Since the week began with an unexpected dump, sentiments began low, but today, the crypto market pumps as the Fed injects $13.5 billion into the banking system overnight. Could this be a sign for QE kicking off and for a continued bull market?
Crypto Market Pumps as Fed Injects $13.5 Billion
The week and start of the final month of 2025 started off with the price of Bitcoin (BTC) falling below the $85,000 price range. This led to bearish expectations as most analysts and traders already had their hopes down. However, December 1, 2025, also marked the day the Fed officially ended Quantitative Tightening (QT). This move was expected to herald the start of an eventual Quantitative Easing (QE).
Today, the crypto market saw a sign that QE could possibly be beginning a lot sooner than expected, with the Fed suddenly injecting funds into the banking system overnight. As a result, the crypto market saw an immediate price surge as capital from these overnight injections flowed into crypto markets as well. To highlight, the price of BTC saw a surge of over 7% in under 24 hours.
In detail, the price of Bitcoin (BTC) , the pioneer crypto asset, surged from $87,000 to $94,000 in under 24 hours. Similarly, the price of Ethereum (ETH), the pioneer altcoin asset, surged from $2,800 to over $3,000a pump of over 9%, in under 24 hours as well. This, in turn, led to a rise in sentiment as well. Now, bullish analysts are showing greater interest in a bullish market’s return.
As we can see from the post above, the reputed crypto analyst, trader, and enthusiast, Lark Davis , highlights how the Fed has officially ended QT. He then highlights that, besides that, the Fed has also dropped a hint for QE by injecting $13.5 billion into the banking system overnight. This marked the second overnight repo operation since COVID.
Has QE Commenced, Leading to a Continued Bull Market?
The expert continues to contemplate this move, saying that any overnight repo operations don’t just happen without a reason. Rather, it happens when banks are struggling to meet short-term liquidity needs or maintain their balance-sheet requirement. The same happened in late 2019/early 2020, and most people think COVID was the main reason for QE, but the repo market started flashing warnings months earlier. Finally, Davis declares that we are now seeing the same pattern again. If these repo operations continue, the next phase of liquidity expansion is a lot closer than anyone thinks.
