Fed’s $13.5B repo injection sparks fresh liquidity questions

BlackRock's U.S. Bitcoin ETF has reached $70 billion in assets under management (AUM), generating approximately $245 million in annual fees, making it the firm's most profitable product line. This growth has contributed to BlackRock's total bitcoin allocations nearing $100 billion across various products.

The Federal Reserve has confirmed the GENIUS Act's stablecoin rules, which mandate issuers to maintain bank-like reserves and oversight, thereby limiting experimental designs and high-yield structures. This regulatory framework aims to enhance the stability and trustworthiness of stablecoins in the market.

Grayscale has indicated that Bitcoin's recent sell-off in 2025 appears to be a local bottom rather than a peak in its four-year cycle, suggesting a potential breakout to new highs in 2026, contingent on Federal Reserve policies and U.S. cryptocurrency legislation.

Bitcoin has rebounded from a recent dip, climbing from $84,000 to approximately $87,000, attracting renewed interest from both large investors and smaller traders. This recovery follows a period of forced liquidations and reflects a stabilization in the market.

Bitcoin is currently facing a significant price target of $50,000 as the Federal Reserve injected $13.5 billion in overnight liquidity, marking the end of its quantitative tightening (QT) phase. This liquidity boost is the second-largest since the onset of the COVID-19 pandemic, signaling a shift in monetary policy that could impact risk assets like Bitcoin.

Kalshi has launched tokenized event contracts on the Solana blockchain, aiming to attract liquidity from the cryptocurrency community as prediction markets gain traction in the U.S. This integration allows users to engage with event contracts in a decentralized manner, enhancing accessibility and participation.

Huione, a Cambodian lender facing U.S. sanctions and allegations of money laundering, has ceased operations following a significant increase in withdrawal requests, which it attributed to a bank run. This development marks a critical moment for the company amid ongoing scrutiny of its financial practices.

Despite hopes for Federal Reserve rate cuts, the U.S. 10-year yield remains unchanged, posing challenges for Bitcoin bulls who anticipated lower bond yields and a weaker dollar to boost cryptocurrency prices. This stagnation signals a cautious outlook from the Treasury and FX markets, which could dampen investor sentiment in the crypto space.