Fed Injects $26B as Bitcoin Fails to Hold $90K - Year-End Rally Hopes Fade
The Federal Reserve just pumped $26 billion into the system. Bitcoin just failed to hold $90,000. Coincidence? Traders banking on a festive surge are watching those year-end rally hopes evaporate.
Liquidity vs. Gravity
Central bank liquidity hits the street. Digital gold can't find its footing. The math seems simple: more dollars chasing the same assets should lift all boats. Yet here we are—watching Bitcoin struggle against basic resistance levels while traditional finance does its usual song and dance.
The Ghost of Rally Past
Markets have memories. They remember past Decembers where crypto went parabolic. This time? The script flipped. Every attempt to climb gets met with a sell order. The 'Santa Rally' narrative is cracking under the weight of its own hype—another classic case of Wall Street selling the dream while quietly managing the reality.
So the Fed opens the taps. Bitcoin stumbles. The year closes not with a bang, but with a question mark hanging over the entire digital asset thesis. Maybe the old rules still apply, or maybe the market's just taking a breath before the next leg up. Either way, it's a stark reminder: in finance, the only free lunch is the one you bring yourself.
Federal Reserve Adds $26 Billion Through Overnight Repos
According to data released by the Federal Reserve, the central bank injectedinto the US economy via overnight repurchase agreements. The operation consisted ofand.
BREAKING:
Fed just pumped $25.95 billion into the economy.
Bullish for markets. pic.twitter.com/Ml59ltITtu
— Ash crypto (@AshCrypto) December 29, 2025
This MOVE followed a similar action last week, when the Fed added approximatelythrough Treasury bills and MBS purchases. Historically, such liquidity injections have been seen as bullish for crypto markets, especially heading into year-end periods.
Bitcoin briefly surged aboveduring the overnight operation, coinciding with the Fed’s liquidity injection. However, the rally proved short-lived, with BTC later retreating sharply to an intraday low of around, erasing all gains.
Crypto Market Pulls Back as Bitcoin Loses Momentum
Bitcoin’s reversal weighed on the broader digital asset market. According to CoinMarketCap data, total crypto market capitalization fell to approximately, down nearly.
With year-end momentum weakening, major cryptocurrencies risk closing the year in negative territory. Bitcoin is currently down more than, whilehas declined,is down, andhas fallen roughlyso far this year.
Year-End Rally Optimism Continues to Fade
Market sentiment indicators suggest diminishing confidence in a late-year rebound. Data from Polymarket shows the probability of bitcoin reachingbefore year-end has dropped to just, while the likelihood of BTC falling tostands at. These figures imply expectations of continued range-bound trading rather than a decisive breakout.
$BTC spot CVD is trending down.
Coinbase Bitcoin premium has flipped negative.
This is not looking good. pic.twitter.com/31vXVKdhD3
— Ted (@TedPillows) December 29, 2025
Bitcoin has repeatedly faced strong selling pressure NEAR the, reinforcing cautious sentiment among traders.
Institutional Flows and On-Chain Signals Raise Caution
Adding to bearish signals, BlackRock reportedly transferred, worth approximately, to Coinbase, potentially indicating preparation for a sale. Bitcoin ETFs have continued to register net outflows, with.
Market analyst Ted Pillows noted that Bitcoin’s spotis trending lower, a sign that selling pressure may outweigh buying interest. He also highlighted that the, a metric often associated with weakening US-based demand.
Together, these indicators suggest that downside risks currently outweigh the probability of a sustained year-end crypto rally, despite ongoing liquidity support from the Federal Reserve.
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