Bitcoin Holds Near $91K Ahead Of Fed’s $3.8 Billion Liquidity Injection

When the traditional money printing goes up, smart money flows into cryptocurrencies, according to crypto traders.

• The New York Fed’s $3.8 billion injection has renewed focus on liquidity conditions across markets.
• Crypto watchers say added liquidity can support Bitcoin by easing funding and boosting risk appetite.
• Institutional wallets added 577,000 Bitcoin, while Japan's bond market stress remains in focus amid broader market volatility.

On Tuesday, the Fed is set to inject $3.8 billion into the economy — and crypto traders will be watching as some speculate Bitcoin could see upside amid a macro-liquidity regime that’s been easing once again.

The recent liquidity injection by the Fed comes amid renewed focus on liquidity conditions globally and follows a period of balance sheet expansion as the central bank seeks to support market functioning. Market watchers often view such liquidity injections as positive for risk assets, including Bitcoin (BTC).

Liquidity injections tend to be interpreted by crypto traders as a tailwind for Bitcoin, under the assumption that looser funding conditions in traditional investment markets tend to accompany stronger price action. Past Fed liquidity operations, including a $29.4 billion repo injection in 2025, were discussed by Cardano (ADA) founder as potentially supportive for Bitcoin and other risk assets.

Bitcoin Amongst Rise In Liquidity

Bitcoin (BTC) was trading near $90,843, reflecting the recent macro dynamics and ongoing interest in digital assets. On Stocktwits, retail sentiment around Bitcoin dropped from ‘bullish’ to ‘bearish’ territory, as chatter remained at ‘normal’ levels over the past day. 

During the period from December 12, 2025, to January 14, 2026, when the last liquidity injection was done, Bitcoin’s price moved roughly from $90,270 on December 12 to about $96,929 on January 14, as per Bitcoin’s historical data. 

On Monday, a crypto watcher named DefiWimar posted on X, highlighting the importance of fresh liquidity and its potential impact on asset allocation decisions. Traders interpret such action as, “When traditional money printing kicks into high gear, smart money flows into crypto,” highlighting how increasing availability of paper money can enhance purchasing power for various assets.

Crypto Watchers Eye Liquidity As Central Banks Stay Active

Separate on-chain data also points to continued institutional engagement. The U.S. custody wallets (excluding exchanges/miners) added roughly 577,000 Bitcoin, almost $53 billion, over the past year, indicating ongoing institutional accumulation, as per CryptoQuant data.

The Fed’s planned liquidity injection comes as central banks globally remain active in addressing market stress. On X, trader JustDario shared a Tullett Prebon screen showing the Japan 30-year government bond yield at 3.755% and said the Bank of Japan (BOJ) provided roughly ¥1 trillion in support. He also stated that the injection included about ¥800 billion lent directly to banks at 0.75%, bringing the BOJ's intervention tally since late July 2025 to 201.

Combined, the Fed’s liquidity operation and persisting central bank activity worldwide are building a macro backdrop that crypto traders are keeping a close eye on for signs of renewed risk-on momentum.

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