Crypto Market News Today, January 20: Federal Reserve Injects $8.3 Billion Liquidity as Gold Records Another ATH

Group 1 - The Federal Reserve's latest liquidity injection amounts to $8.306 billion, occurring at a time when investor sentiment is cautious and defensive [1] - The total monthly liquidity injections by the Federal Reserve have reached $55.4 billion, indicating a significant level of reserves in the banking system [4] - The New York Fed's focus on Treasury bills maturing between February and May suggests a strategic approach to liquidity management without reigniting debates on quantitative easing [3] Group 2 - The rise in gold prices to an all-time high (ATH) of $4,717 per ounce reflects investor anxiety and a potential shift in capital towards safer assets [2] - Central banks are expected to purchase 755 tonnes of gold by 2026, driven by geopolitical pressures and tariffs, which may influence market dynamics [6] - Bitcoin's market behavior typically follows gold's price movements, with historical patterns indicating that it attracts capital after gold during periods of economic uncertainty [6][7] Group 3 - Current on-chain data for Bitcoin shows muted liquidations, while the value locked in decentralized finance (DeFi) is increasing, suggesting a buildup of pressure for potential price movements [8] - Bitcoin's dominance remains around 60%, indicating a stable position in the market despite the cautious sentiment [8] - The Federal Reserve's liquidity injections tend to compress volatility, leading to a buildup of pressure that can result in aggressive market movements [8]