Bitcoin News Today:

The Federal Reserve's recent injection of $29.4 billion in liquidity through overnight repo operations, a Fed repo usage spike, has reignited speculation about a potential policy pivot, with Bitcoin traders positioning for a short squeeze as liquidity-driven market dynamics align with renewed corporate adoption of the asset. The surge in repo usage—the highest in nearly five years—signals tightening dollar funding conditions and raises questions about the central bank's ability to maintain its hawkish stance amid growing systemic stress.

Dallas Fed President Lorie Logan hinted at the possibility of resuming asset purchases if repo rates remain elevated, echoing the 2019 playbook when liquidity injections preceded multi-month risk-asset rallies. This scenario has crypto analysts bullish on Bitcoin, which historically surges when liquidity returns. "Bitcoin tends to follow liquidity trends," said BullTheoryio, noting that the current repo spike mirrors pre-2020 conditions that catalyzed a $7,000-to-$60,000 BTC rally.

Corporate treasuries are also reinforcing Bitcoin's narrative. Prenetics Global Limited, which spent $11 million to add 100 BTC, expanded its holdings to 378 coins worth $41 million. Meanwhile, Strategy Inc's Q3 2025 earnings call reported that the firm (MSTR), the largest corporate Bitcoin holder, acquired 397 BTC for $45.6 million in October 2025, raising its total stash to 641,205 coins valued at $69 billion. The firm's CEO, Michael Saylor, has funded purchases through equity sales, despite its shares trading at a discount to its net asset value (mNAV).

The Fed's liquidity measures are further bolstered by corporate demand. Steak 'n Shake, which reversed plans to accept Ether after backlash from Bitcoiners, launched a Bitcoin treasury, donating 210 satoshis per meal to customers. This mainstream adoption, coupled with Prenetics' and MSTR's moves, underscores Bitcoin's growing role as a balance-sheet asset.

DeFi platforms are also adapting to macro trends. Uniswap liquidity providers are recalibrating strategies, as Bitget's analysis shows, amid divergent corporate liquidity outcomes, with stablecoin pools and cross-chain deployments seen as hedges against volatility. As traditional markets grapple with liquidity fragmentation—exemplified by Spirit AeroSystems' losses versus Portland General Electric's $1 billion reserve—DeFi's capital efficiency becomes increasingly attractive.

Analysts warn that the Fed's potential pivot could trigger a short squeeze in Bitcoin, as tight liquidity often precedes aggressive central bank interventions. Historical data shows BTC rallying 20–30% within months of 2019-style liquidity injections. Current on-chain metrics, including SRF usage and SOFR prints, will be key indicators for traders monitoring the Fed's next move.