The US Federal Reserve just lately introduced that it’s going to inject $55 billion in liquidity by shopping for Treasury payments. The primary spherical of Treasury invoice purchases will begin at this time, Jan. 20, 2026. In accordance with an official schedule, the Federal Reserve will buy $8.3 billion price of Treasury payments at this time, injecting much-needed liquidity into the market. Many anticipate Bitcoin (BTC) to rally following the liquidity injection. Let’s focus on.
Can Bitcoin Rally To $120,000 After The Fed’s Liquidity Injection?

BTC has skilled a major correction over the previous few days. The unique crypto reclaimed the $97,000 mark on Jan. 15, however has since dipped to the $92,000 value stage. In accordance with CoinGecko’s Bitcoin information, the value of BTC is down 0.6% within the final 24 hours, 1.6% within the 14-day chart, and 9.4% since January 2025. Nonetheless, the asset’s value has risen 1.2% during the last week and 4.8% over the earlier month.
Bitcoin and the bigger market correction over the previous few days are doubtless on account of geopolitical tensions between the US and Greenland. Many international locations have rallied in help of Greenland, with France, Germany, and Norway sending some troops. The US has imposed extra tariffs on international locations supporting Greenland, resulting in a spike in investor fear.
Regardless of the market bearishness, there’s a probability that Bitcoin (BTC) will rally following the Federal Reserve’s liquidity injection. Traditionally, BTC has rallied underneath such circumstances. Furthermore, many specialists are already fairly bullish on BTC’s 2026 forecast. Bernstein even anticipates the unique crypto to breach the $150,000 mark this 12 months.
Nonetheless, given the macroeconomic uncertainties and the continued geopolitical tensions, buyers could avoid dangerous property, akin to cryptocurrencies. Moreover, buyers are taking a risk-off strategy, preferring gold and silver investments. Each commodities have new all-time highs. Bitcoin’s (BTC) value might consolidate round present ranges or face additional corrections if the pattern persists.




