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ChainCatcher News, Delphi Digital posted on X that the Federal Reserve's reverse repurchase agreement (RRP) balance has dropped from a peak of over $2 trillion to almost zero, meaning its liquidity buffer has been depleted. In 2023, the scale of RRP was sufficient to buffer the Treasury General Account (TGA) replenishment by absorbing Treasury issuance, thus avoiding the depletion of bank reserves. As the RRP balance bottoms out, this buffer no longer exists. Any future Treasury issuance or TGA rebuilding will have to directly consume bank reserves. The Federal Reserve faces two choices: allow reserves to decline and risk another spike in repo rates, or directly expand its balance sheet to provide liquidity. Given the situation in 2019, the second option is more likely. This means the Fed will shift from withdrawing liquidity to injecting liquidity back into the market, marking a significant change from the past two years. With the end of quantitative tightening (QT) and the imminent reduction of the TGA, marginal liquidity has turned net positive for the first time since early 2022. A key resistance in the cryptocurrency market may be fading.

According to ChainCatcher, as reported by Decrypt, Galaxy Digital has announced the acquisition of Alluvial Finance, taking over the technical development of the institutional liquid staking platform Liquid Collective. Liquid Collective supports institutional staking of ETH and SOL, while maintaining asset tradability. The platform was launched in 2023, and in August its TVL reached a record of $1.75 billion, currently around $1 billion. The protocol charges a 10% service fee on staking rewards, with monthly revenue reaching $380,000 in October. Galaxy founder Novogratz stated, this move is a natural extension of the company's strategy to build institutional-grade on-chain infrastructure. After the acquisition, Galaxy will obtain Alluvial's staking tools, and plans to add support for more assets.