The Federal Reserve just pumped $19.5 billion into the U.S. banking system through overnight repurchase agreements. That's significant—and here's why it matters to anyone watching markets.

This is the third-largest liquidity injection since COVID hit. Think about that for a second. The Fed's been relatively quiet on the repo front lately, so a move of this size signals something. Banks needed cash, and the Fed stepped in.

Why should you care? Liquidity flooding into traditional finance usually has ripple effects across markets. When the Fed's printing and injecting, it affects everything from bond yields to risk assets. And crypto traders know the drill—macro conditions drive sentiment. Rate expectations shift. Risk appetite changes. Money flows move.

The overnight repo market is basically where banks park excess reserves or grab short-term cash. When you see spikes like this, it often means banks are stressed or the Fed's preemptively smoothing out market friction. Either way, it's a reminder that traditional finance volatility can quickly translate into crypto market moves.

Keep your eyes on Fed announcements. These liquidity operations don't always make headlines, but they shape the environment we're all trading in.