The Federal Reserve injected $74.6 billion into the economy on December 31, 2025, through overnight repo operations, significantly impacting the crypto market. Bitcoin surged to $89,000, driven by reduced selling pressure and a potential relief rally, as the broader crypto market showed signs of recovery. This liquidity injection, the largest single-day operation this year, targeted holiday liquidity demands and tax-loss harvesting. The Fed purchased $31.50 billion in U.S. Treasury bills and $43.1 billion in mortgage-backed securities. Market experts noted the crypto market's breakout from its downtrend, suggesting a positive outlook for a relief rally. The operation underscores the interplay between traditional finance and digital assets, following a recent rate cut and new Treasury bill purchases aimed at stabilizing market liquidity. While Bitcoin's immediate rise is notable, the long-term effects will depend on broader economic and regulatory developments.