Crypto Market News Today, December 27: Federal Reserve Injected $2.5 Billion into the Market, Bullish for Bitcoin Price

by Molly Poole


Big news from the Federal Reserve as they just injected $2.5 billion into the US banking system in an overnight repo, adding to the $120 billion pumped into the market this year. But, despite this massive liquidity boost, Bitcoin price is still lagging and struggling to break the $90,000 resistance.

On a positive note, Visa has officially declared crypto as “mainstream” in 2025, with stablecoins and AI payments leading the charge. These all happen when gold hit a record high of $4,562 per ounce, and silver is now at $79. Both metals have been on a run lately, just like the pattern seen in 2020 when gold ($2,075/oz) and silver ($29/oz) hit their peaks, which then started big rallies in other assets.

With so much bullish news surrounding Bitcoin, it’s a bit surprising to see its price lag behind, especially with gold and silver keeping breaking their highs.

So, could Bitcoin be next in line for a major surge?

Market Cap





Gold and Silver at All-Time Highs as the Federal Reserve Injected More Liquidity

Tracking back to 2020, after gold and silver reached their highs, Bitcoin had a huge breakout. It jumped from $11,500 to $29,000 by the end of the year, which was a 150% gain. By 2021, the crypto market cap shot up from about $390 billion to over $2 trillion. Traditional stocks like the S&P 500 also saw nice gains, with a 7% rise in 2020, followed by a 27% increase in 2021.

Big news from the Federal Reserve as they just injected $2.5B into the US banking system in an overnight repo. But Bitcoin price still lags.

(source – Curvo)

Now, with the Federal Reserve continuing to pump liquidity into the market, Bitcoin could follow a similar path, and the bear market might finally end. The question is: when will that happen?

Right now, Bitcoin is stuck below $90,000, but there’s a huge volatility anomaly happening that might lead to a breakout. Realized volatility is sitting at 37.8%, which shows that Bitcoin is actually moving, but implied volatility is much lower at 15.1%.

Big news from the Federal Reserve as they just injected $2.5B into the US banking system in an overnight repo. But Bitcoin price still lags.

This mismatch between what the market expects and what’s actually happening is historically unsustainable, and it might as well send Bitcoin price upward soon.

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The Volatility Anomaly and Bitcoin Price

So why is this volatility mismatch so important? Because, simply put, it’s putting Bitcoin on sale right now. People are jumping into call options (which bet on higher prices), expecting that the price of Bitcoin will go up. As a result, dealers have to chase the rising prices to fulfill these bets, which turn small rallies into much bigger runs.

There’s also the fact that a 4chan user who correctly predicted Bitcoin’s October peak at $126,198 is now forecasting a Bitcoin price of $250,000 by 2026. Gemini’s CEO, Tyler Winklevoss, also tweeted that Bitcoin is “Gold 2.0” and said, “Wait till the world realizes.” These can all be the sparks needed for next year’s bull run.

As Satoshi Nakamoto famously said,

If you don’t believe me or don’t get it, I don’t have time to try to convince you, sorry.”

It’s a strong statement, but with everything happening in the market right now, Bitcoin is poised to break out in a big way.

Keep an eye on the Federal Reserve’s moves and how they might push Bitcoin price higher. The market might be lagging right now, but history shows that crypto always catches up in the most violent way.

If you don’t believe me, I don’t have time to try to convince you.

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The post Crypto Market News Today, December 27: Federal Reserve Injected $2.5 Billion into the Market, Bullish for Bitcoin Price appeared first on 99Bitcoins.





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