Crypto Market Gets Year-end Boost as Fed Injects $74 Billion Into Economy

The crypto market is looking to stage a year-end rally before 2026 begins and has received a major boost with the New York Fed’s overnight repo operations, its largest this year. This development coincides with the significant inflows that the Bitcoin ETFs recorded yesterday, breaking their seven-day outflow streak in the process.

Fed Injects $74 Billion, Providing a Boost for the Crypto Market

The New York Fed’s repo operations show that the U.S. central bank injected $74.6 billion into the banking system today. This came through a $31.50 billion purchase of U.S. treasury bills and a $43.1 billion purchase of mortgage-backed securities.

This marks the third consecutive repo operation this week. As CoinGape reported, the Fed injected $26 billion into the economy on December 29 and injected another $3 billion on December 30. The $74.6 billion injected into the economy today through these repo operations is the largest this year, which is bullish for the crypto market.

This development comes as the market continues to face liquidity pressures due to the holiday season and tax-loss harvesting sales. Bitcoin, in particular, has struggled to break above $90,000 all through December.

However, the crypto market is looking to stage a last-minute rally before the new year begins. Market expert Ted Pillows revealed that the crypto market cap has broken out of its downtrend. Based on this, he stated that things are looking for a relief rally.

Crypto MCap has broken out of its downtrend.

Things are looking good for a relief rally. pic.twitter.com/Cem53kx9iK

— Ted (@TedPillows) December 31, 2025

A positive for the market is that Bitcoin long-term holders have stopped selling, which could ease the selling pressure on the flagship crypto and the broader market. BTC rallied to as high as $89,000 today but quickly retraced after the U.S. market open, likely due to tax-loss harvesting sales.

Bitcoin ETF Flows Turn Positive

Another positive for Bitcoin and the broader crypto market is that the BTC ETFs ended their seven-day streak of daily net outflows, recording a daily net inflow of $355 million on December 30. This could contribute to a significant rally for the market if the daily inflows are sustained.

The Ethereum ETFs also recorded daily net inflows yesterday, ending a four-day streak of outflows. Grayscale’s ETHE led these Ethereum funds on the day with a net inflow of $50 million.

Meanwhile, Ted Pillows raised the possibility of liquidity moving from gold to Bitcoin and the broader crypto market soon enough. He stated that BTC/Gold is now at a crucial support zone and that if the zone holds, liquidity could flow from the precious metal into the flagship crypto.

BTC/Gold is now at a crucial support zone.

The fractal looks pretty similar to the 2017-21 cycle, but that would take more time for confirmation.

If this zone holds, we could see liquidity moving from Gold into Bitcoin. pic.twitter.com/dMUgAFjxGy

— Ted (@TedPillows) December 31, 2025