Fed to inject $26.3B as Bitcoin eyes $60K retest

The Federal Reserve will inject $26.3 billion into the financial system, beginning with a $6.5 billion liquidity operation on May 18. The injections are part of a scheduled program totaling $26.3 billion. Bitcoin has fallen below $80,000.

More than $100 billion was erased from major high-cap assets over a 72-hour span. The U.S. Dollar Index rose about 1.5% on the week and posted five straight days of gains after April’s U.S. inflation rate was reported at 3.8%. U.S. Treasury yields climbed over the same period.

On-chain data and exchange flows show mixed short-term liquidity. Stablecoin net inflows to a major exchange exceeded $1.5 billion on May 14, while the same venue recorded nearly $1.3 billion in stablecoin outflows on May 12.

U.S. margin debt increased by about $83 billion in April, bringing total margin to a record $1.3 trillion and marking roughly a 53% rise over the past 12 months.

Short-term derivatives prices and order books display positioning that implies a potential Bitcoin retest near $60,000. Market participants are monitoring liquidity flows, dollar moves, Treasury yields and leverage levels as they adjust exposures.

The Federal Reserve’s operations begin May 18 with the initial $6.5 billion operation and additional injections to follow under the $26.3 billion program.