On December 1, the Federal Reserve injected $1.35 billion into the market in a single day through overnight repos! What does this scale mean? It’s second only to the operations during the 2020 pandemic, even surpassing the period when the internet bubble burst in 2000.

"Overnight repo" may sound complicated, but it’s essentially a lifeline for banks when they’re short on cash—using government bonds as collateral to borrow from the Fed, then repaying the principal plus interest the next day. This move serves as both an emergency measure for banks and a powerful tool for the central bank to regulate market liquidity.

Short-term impact? Definitely a bullish signal. Once liquidity loosens, banks have more cash on hand, which naturally flows into lending, investments, and other areas. Stock, bond, and cryptocurrency markets could all benefit as a result. More importantly, the Fed's proactive intervention sends a clear message: regulators are watching the market and won't let risks spiral out of control.

Moments of market panic are often when opportunities emerge. With liquidity returning, are you ready?