As geopolitical tensions escalate and the global economy remains fragile, some analysts suggest that the US Federal Reserve is secretly injecting cash into the markets. While the Federal Reserve has not officially announced any policy changes yet, evidence such as a significant decrease in the Reverse Repurchase Agreement (RRP) account balance indicates an increase in liquidity in the market. The account balance has plummeted by 94%, from over $2.5 trillion in 2022 to just $148 billion. Alongside these developments, trade tensions between the US and China have also intensified. China’s Foreign Ministry spokesperson stated that Beijing will ‘fight to the end’ against Trump’s proposed tariffs, which could reach up to 104% on certain Chinese goods. Analysts view this tariff war as an attempt to reduce the yields of US 10-year treasury bonds, as the country faces debts worth $6.5 trillion. The recent decrease in the RRP account balance has led to the return of liquidity to the markets and growth in high-risk assets, including Bitcoin. However, from April 2 until now, the Bitcoin market cap has dropped by over $500 billion, and its price plummeted below $75,000 for a while. Analysts believe that if the trend of secret cash injection continues officially, it could lead to a resurgence in the cryptocurrency market; otherwise, the likelihood of another serious recession looms. On the momentary digital currency price page, you can view live prices of all tokens and cryptocurrencies.
