BTC vs Fed Repo BuybacksPositive correlation between these two assets/economic measures.
To take this a step further, Repo payments may be a leading indicator FOR BTC...
Fed t-bill repos? The true leading indicator?
Indicator info
Overnight Reverse Repurchase Agreements (ON RRP) measures the daily total dollar volume of US Treasury securities sold by the Federal Reserve to eligible counterparties — primarily money market funds — with an agreement to repurchase them the following business day. The facility's award rate sets a floor under short-term money market interest rates by absorbing excess liquidity, and usage of the facility serves as a vital indicator of short-term funding market dynamics and systemic liquidity distribution.
Related indicators
RRP Exhaustion and TGA Rebuild Signal a Tightening Cycle1. Overview
Liquidity conditions across the U.S. financial system have entered a tightening phase once again.
The U.S. Treasury General Account (TGA) has surged from its June low of around $200 billion to roughly $905 billion today, while the Federal Reserve’s Reverse Repo Facility (RRP) has collap
Understanding Reverse Repo Agreements: The Q1 Liquidity DanceUnderstanding RRPONTSYD: The Quarterly Liquidity Dance and Its Impact on Markets
The term RRPONTSYD, which stands for "Overnight Reverse Repurchase Agreements: Treasury Securities Sold by the Federal Reserve," might sound complex, but it's pivotal in understanding financial market behaviors, especia
Long
2008 and 2019 - Stock Market Crash: Similar Signs Now! S&P 5002008 and 2019 - Stock Market Crash: Similar Signs Now! -Reverse Repo and S&P 500: Inverse Correlation is Screaming.
Here are 5 Highlights:
1:: Quantitative tightening has been underway since June 2022, and the Fed will have to make a Big Move- iin September 2024:
2:: The overnight reverse repo fa
btc/rrpas i come from hibernation to give you the mother of all shorts... BTC and i have multiple reasons why... 1. groups.csail.mit.edu 2. japan carry trade (alot of crypto was purchased using negative loans in yen) and 3. giving the keys to larry tinkle finkle (the OG financial crisis architect). laugh
The market bottomed when Reverse Repo peaked.The market bottomed when Reverse Repo peaked.
After Reverse Repo started trending down, the market started its path up to new All time highs.
Liquidity as measured by M2 has been picking up which explains why we see prices making or approaching new ATM
Rally since 2022 based on Reverse Repo Drain $QQQ $SPY $SPX $NDXThe entire rally since October 2022 has been based on the rapid depletion of the Fed's reverse repo. When the RR drains rapidly, the money flows directly into the stock market. When the RR gains, it precurses a drop in the stock market.
At each pivot point the stock market has followed suit. We ju
Short
Rally since 2022 based on Reverse Repo Drain $QQQ $SPY $SPX $NDXThe entire rally since October 2022 has been based on the rapid depletion of the Fed's reverse repo. When the RR drains rapidly, the money flows directly into the stock market. When the RR gains, it precurses a drop in the stock market.
At each pivot point the stock market has followed suit. We ju
Short
The Potential Consequences for the U.S. Debt CrisisFrom zetalon.com
The article by Ming Wong explores the significant financial consequences if the Overnight Reverse Repurchase Agreement (ON RRP) facility reaches a zero balance. Managed by central banks like the Federal Reserve, the ON RRP is crucial for controlling short-term interest rates and
Short
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