Don’t panic yet—the Federal Reserve is actually making moves behind the scenes.

The data from December 1st is pretty shocking—overnight repo operations soared to $13.5 billion, which is the highest level since the peak of the 2020 pandemic. For reference, this scale even surpasses the levels seen during the 2000 dot-com bubble burst.

💡 What exactly is an overnight repo?

Simply put, it’s the Fed’s “overnight emergency loan” for financial institutions. Banks use hard assets like Treasury bonds as collateral to borrow money from the Fed for short-term liquidity needs, pay it back with interest the next day, and get their collateral returned. This move not only injects liquidity into the banking system but also serves as a powerful tool for the Fed to control market liquidity.

📊 What does this mean for the market?

The logic is straightforward: liquidity injection → banks are flush with cash → easier funding conditions in the market → stock, bond, and even crypto markets can catch a breather.

With this move, the Fed is basically telling the market: “I’m watching, and I’ll step in when necessary.” With sentiment stabilized, now might be a good window to calmly reposition. BTC, major coins, and high-quality project tokens might be worth a fresh look.