Bitcoin Price Rebound as Fed Injects $7B Liquidity

Bitcoin rebounds after Fed’s $7B liquidity boost and Binance BTC buy rumors. Sentiment shifts as fear index starts to ease.

Aurelien Sage December 22, 2025 - 2:30 PM

Bitcoin price rebound amid Fed liquidity boost and Binance BTC buy rumors.

Bitcoin News

Fed injects $7B, improving market liquidity
Binance rumored to buy over $800M in Bitcoin
Crypto sentiment climbs as prices rebound

The crypto market is showing signs of recovery as Bitcoin leads a slight rebound. The Federal Reserve’s recent $7 billion liquidity injection has helped lift investor sentiment, easing fears of a deeper downturn. Rumors that Binance purchased over $800 million worth of Bitcoin ($BTC) also contributed to a renewed risk appetite among traders.

As a result, Bitcoin rose by 0.9% to $88,911, while Ethereum ($ETH) climbed 1.8% to reach $3,027. These modest gains reflect a cautious return of bullish sentiment, especially after weeks of market-wide anxiety.

Sentiment Shifting from Extreme Fear

The Fear & Greed Index (FGI), a popular metric for gauging market sentiment, has risen from 25, though it still hovers in the “Extreme Fear” zone. This suggests that while confidence is beginning to return, many investors remain wary of broader macroeconomic risks.

Total crypto market capitalization currently sits at $3.09 trillion, showing stability despite high liquidation volumes—$196 million in the past 24 hours. These numbers highlight the market’s volatility, but also hint at a possible turning point if confidence continues to grow.

Fed’s $7B liquidity injection + rumors Binance bought $800M+ $BTC sparked small bounce, as risk appetite improved. Sentiment is climbing out of extreme fear as majors rebound.$BTC: $88,911 +0.9%$ETH: $3,027 +1.8%

FGI: 25 → Extreme Fear
Market Cap: $3.09T
Liquidations: $196M pic.twitter.com/5pGNvqy7Av
— CryptoRank.io (@CryptoRank_io) December 22, 2025

Bitcoin Leading the Rebound

Bitcoin remains the anchor for crypto sentiment, and any positive shift in its price typically reverberates across altcoins. The rumored large-scale BTC buy by Binance has amplified bullish expectations. If confirmed, it could signify institutional confidence returning to the market at current price levels.

Overall, while the rebound is still in early stages, the combination of liquidity support from the Fed and speculative accumulation by major players like Binance has created a foundation for potential upside.

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