The Standing Repo Facility just hit $25 billion in usage. That's the second-highest reading we've seen since the COVID era.

What does this tell us? Banks are scrambling for overnight liquidity. When institutions tap the Fed's emergency lending window at this scale, it usually signals stress beneath the surface—either a sudden cash crunch or reluctance to lend in the interbank market.

For crypto traders, this matters. Tightening liquidity in traditional finance often spills over. Risk assets get squeezed. Volatility picks up. We've seen this pattern before: when TradFi liquidity dries up, digital assets don't stay immune for long.

Keep an eye on repo rates and Fed balance sheet moves. They're early warning signals.