The Federal Reserve is gearing up for substantial liquidity injections into the US economy. Tomorrow sees an $8.16 billion inflow, followed by another identical amount on January 8th. Beyond these headline figures, the Fed continues running ongoing repo operations that keep capital flowing through the financial system. This cascading wave of liquidity creation is reshaping market dynamics across the board.

When you stack up all these monetary stimuli, it becomes increasingly difficult to maintain a bearish stance on Bitcoin and altcoins. The macro backdrop—characterized by expanding money supply and lower rate pressures—historically tends to create tailwinds for risk assets and cryptocurrencies. Market participants are positioning accordingly as liquidity conditions tighten less than expected.