The Federal Reserve has continued its overnight repo operations to begin the new year. This comes as Bitcoin rises, looking to reclaim the psychological $90,000 level despite increased macro tensions following Maduro’s indictment.
Fed Injects $22.8 Billion, With Bitcoin On The Rise
Data from the New York Fed shows that the U.S central bank injected $22.8 billion into the economy through its overnight repo operations. This move came through a $19.50 billion purchase of U.S. treasury bills and a $3.30 billion purchase of mortgage-backed securities.
This marks the first repo operation this year after 2025 ended with record borrowing from the Fed’s standing repo operation. As CoinGape reported, the Fed injected $74 billion on December 31 last year, the largest in 2025, providing a boost for Bitcoin and the broader crypto market.
BTC has already begun the year on a high note, rising above $90,000 yesterday, marking a new yearly high for the flagship crypto. This comes as the market looks to recover from the massive decline towards the end of last year, which began following the infamous October 10 crash.
Notably, a CryptoQuant analysis predicted that Bitcoin could rise to as high as $170,000 this year, if easing expectations materialize early and ETF inflows stabilize. Although the Fed is unlikely to make any cuts at the start of this year, it is worth mentioning that it has begun Reserve Management Purchases (RMP), which BitMEX co-founder Arthur Hayes predicts could spark a significant BTC rally.
BTC Unfazed Despite Increased Tensions Following Maduro’s Capture and Indictment
Bitcoin is still up on the day despite tensions over the U.S. capture of Venezuela’s President Nicolás Maduro and his wife. CoinGape has reported earlier that crypto investors were wary of a market crash following this development.
BTC had briefly dropped to an intraday low earlier in the day of around $89,000 following reports that the U.S. was conducting air strikes on Venezuela in a bid to capture Maduro. However, the flagship crypto has since recovered and is trading just below $90,000, up on the day.
Amid the increased tensions, U.S. Attorney General Pam Bondi revealed in an X post that Nicolas Maduro and his wife, Cilia Flores, have been indicted in the Southern District of New York.
She further stated that the charges against Maduro are Narco-Terrorism Conspiracy, Cocaine Importation Conspiracy, Possession of Machineguns and Destructive Devices, and Conspiracy to Possess Machineguns and Destructive Devices against the United States.
