The post Bitcoin Price Holds Near $87,500 Amid Fed’s $2.5B Liquidity, Breakout Possible appeared on BitcoinEthereumNews.com.

Bitcoin price holds steady near $87,500 after the Federal Reserve injected $2.5 billion in liquidity via overnight repurchase agreements. Support at $86,600 remains intact, with realized volatility at 37.8% and implied volatility at 15.1% signaling a potential breakout toward $90,000 or higher. Bitcoin price maintains support near $86,600 following Fed’s $2.5 billion liquidity injection, fostering cautious market optimism. Realized volatility stands at 37.8% while implied volatility is 15.1%, indicating building pressure for a significant price move. Potential upside targets range from $90,000 to $102,000, with downside risks testing $82,000-$84,000 if support breaks. Bitcoin price near $87,500 stabilizes after Fed $2.5B liquidity boost. Key supports hold amid volatility signals—explore breakout targets to $90K+ and trading strategies now. What is the Bitcoin price after Fed liquidity injection? Bitcoin price currently trades around $87,500, showing resilience after the Federal Reserve’s $2.5 billion liquidity injection on December 27, 2025. This support level near $86,600 has held firm, preventing deeper corrections. Traders anticipate a breakout above $90,000 if buying momentum strengthens. How does Fed liquidity impact Bitcoin price volatility? The Federal Reserve’s liquidity measures, such as the recent $2.5 billion via overnight repurchase agreements using mortgage-backed securities, temporarily boost commercial bank reserves and ease short-term funding pressures. This keeps the federal funds rate within its 3.50%-3.75% target range, indirectly supporting risk assets like Bitcoin. Over 2025, total repo operations surpassed $120 billion, with episodic spikes like the $40 billion in early November. Federal Reserve data highlights these as targeted interventions rather than signs of broad market stress. Inflation hovers near 2.4%, prompting rate cuts to sustain employment. Bitcoin price has consolidated, lagging commodities such as gold and silver that rallied concurrently. Analysts note this delay stems from Bitcoin’s sensitivity to broader market sentiment. Realized volatility at 37.8% exceeds implied volatility at 15.1%, a classic setup…

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Filed under: News - @ December 30, 2025 3:14 am