The post Federal Reserve’s ON RRP Balance Hits Zero: Impacts Crypto Liquidity appeared on BitcoinEthereumNews.com. Key Points: The Federal Reserve’s reverse repo balance is now almost zero. Future Treasury issuances may directly affect bank reserves. Supportive liquidity conditions could benefit cryptocurrencies. Delphi Digital reports that the Federal Reserve’s RRP balance has plummeted from over $2 trillion to nearly zero, indicating a shift in liquidity conditions. This transition affects Treasury bond issuance and cryptocurrency markets, potentially leading to a positive liquidity environment for assets like Bitcoin and Ethereum. Federal Reverse Repo Balance Drops from $2 Trillion to Zero The Federal Reserve’s reverse repurchase balance has fallen from over $2 trillion to nearly zero, according to Delphi Digital. This exhaustion of the liquidity buffer implies that future Treasury bond issuances or Treasury General Account (TGA) buildup will directly consume bank reserves. The shift requires the Federal Reserve to choose between allowing reserves to decline, risking a rise in repo rates, or expanding its balance sheet to supply liquidity. The latter seems more plausible given historical precedent. This marks a significant change from prior liquidity withdrawals. “The collapse of the ON RRP balance signifies the exhaustion of a ‘liquidity buffer’ that had previously cushioned bank reserves amid heavy Treasury issuance.” — Delphi Digital Analyst, Delphi Digital Easing Liquidities to Benefit Cryptocurrencies like Bitcoin and Ethereum Did you know? The reverse repo facility was introduced by the Federal Reserve in 2013 to help manage short-term interest rates. Bitcoin is currently trading at $92,382.47, with a market cap exceeding $1.84 trillion and a market dominance of 58.64%, as reported by CoinMarketCap. Over the past 24 hours, Bitcoin’s price decreased by 0.89%, while its 7-day performance shows a 1.73% increase. The 24-hour trading volume was $61.67 billion, though the trading volume declined by 19.97%. Bitcoin(BTC), daily chart, screenshot on CoinMarketCap at 02:00 UTC on December 5, 2025. Source: CoinMarketCap According to… The post Federal Reserve’s ON RRP Balance Hits Zero: Impacts Crypto Liquidity appeared on BitcoinEthereumNews.com. Key Points: The Federal Reserve’s reverse repo balance is now almost zero. Future Treasury issuances may directly affect bank reserves. Supportive liquidity conditions could benefit cryptocurrencies. Delphi Digital reports that the Federal Reserve’s RRP balance has plummeted from over $2 trillion to nearly zero, indicating a shift in liquidity conditions. This transition affects Treasury bond issuance and cryptocurrency markets, potentially leading to a positive liquidity environment for assets like Bitcoin and Ethereum. Federal Reverse Repo Balance Drops from $2 Trillion to Zero The Federal Reserve’s reverse repurchase balance has fallen from over $2 trillion to nearly zero, according to Delphi Digital. This exhaustion of the liquidity buffer implies that future Treasury bond issuances or Treasury General Account (TGA) buildup will directly consume bank reserves. The shift requires the Federal Reserve to choose between allowing reserves to decline, risking a rise in repo rates, or expanding its balance sheet to supply liquidity. The latter seems more plausible given historical precedent. This marks a significant change from prior liquidity withdrawals. “The collapse of the ON RRP balance signifies the exhaustion of a ‘liquidity buffer’ that had previously cushioned bank reserves amid heavy Treasury issuance.” — Delphi Digital Analyst, Delphi Digital Easing Liquidities to Benefit Cryptocurrencies like Bitcoin and Ethereum Did you know? The reverse repo facility was introduced by the Federal Reserve in 2013 to help manage short-term interest rates. Bitcoin is currently trading at $92,382.47, with a market cap exceeding $1.84 trillion and a market dominance of 58.64%, as reported by CoinMarketCap. Over the past 24 hours, Bitcoin’s price decreased by 0.89%, while its 7-day performance shows a 1.73% increase. The 24-hour trading volume was $61.67 billion, though the trading volume declined by 19.97%. Bitcoin(BTC), daily chart, screenshot on CoinMarketCap at 02:00 UTC on December 5, 2025. Source: CoinMarketCap According to…

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