Federal Reserve's RRP Balance Hits Zero: Implications for Cryptocurrency Liquidity

Thursday, Dec 4, 2025 9:13 pm ET1min read

The Federal Reserve's reverse repo balance has fallen from $2 trillion to nearly zero, potentially impacting liquidity conditions for cryptocurrencies like Bitcoin and Ethereum. This shift could lead to favorable liquidity conditions for risk-on assets, enhancing their valuations. The Federal Reserve may expand its balance sheet to supply liquidity, which could positively affect cryptocurrency markets.