Federal Reserve Executes $13.5B Overnight Repo Operation as Funding Markets Show Tightness

The Federal Reserve executed a $13.5 billion overnight repurchase agreement on December 1, marking a notable increase in short-term dollar funding operations. The spike signals temporary tightness in funding markets, where institutions exchange Treasury collateral for cash overnight. Bitcoin's price behavior now correlates with these liquidity shifts, as the asset has become integrated into the same risk-on/risk-off framework that governs traditional finance.