The US Treasury has injected $500 billion into financial markets since February by drawing liquidity from its Treasury General Account (TGA), funding government operations after a $36 trillion debt ceiling was hit on Jan. 2, 2025.<\/p>\n
Macroeconomic financial analyst Tomas said<\/a> that this liquidity surge boosted the net Federal Reserve liquidity to $6.3 trillion, and it may support Bitcoin\u2019s (BTC)<\/a> price in the future, even though risk assets have reflected minimal growth so far. <\/p>\n US Treasury General Account\u2019s expected liquidity flow. Source: X.com<\/em><\/p>\n<\/figcaption><\/figure>\n The TGA represents the government\u2019s checking account at the Federal Reserve, holding capital for daily operations like paying bills or collecting taxes. A decrease in TGA capital means the balance has been deployed into the broader economy, boosting available cash in the markets. <\/p>\n Tomas explained that The TGA drawdown commenced on Feb. 12, following the exhaustion of “extraordinary measures” after the debt ceiling was reached. The TGA balance has dropped from $842 to roughly $342 billion, releasing liquidity into the system, and the targeted liquidity is expected to rise up to $600 billion by the end of April. <\/p>\n The analyst added that the current tax season will temporarily drain liquidity, but the drawdown is expected to resume in May. If debt ceiling talks extend to August, net liquidity could hit a multi-year high of $6.6 trillion, which could cause a bullish tailwind for Bitcoin. <\/p>\n Bitcoin\u2019s correlation with global liquidity. Source: Lynalden.com<\/em><\/p>\n<\/figcaption><\/figure>\n According to a study<\/a> by financial analyst Lyn Alden, Bitcoin has historically moved 83% of the time in line with global liquidity in a given 12-month period. The research termed \u201cBitcoin a Global Liquidity Barometer\u201d compared Bitcoin to other major asset classes such as SPX, gold and VT, and BTC topped the correlation index with respect to global liquidity. <\/p>\n Past TGA drawdowns in 2022 and 2023 have fueled speculative assets like Bitcoin. Thus, a $600 billion boost, plus billions more added over Q2-Q3, could lift BTC\u2019s value if market conditions remain stable. <\/p>\n Related: Bitcoin traders target $90K as apparent tariff exemptions ease US Treasury yields<\/strong><\/em><\/a><\/p>\n Anonymous crypto trader Titan of Crypto shared a bullish outlook for Bitcoin, predicting that BTC could surge to a new all-time high of $137,000 by July-August 2025. In a recent X post, the analyst pointed<\/a> out a bullish pennant pattern on the daily chart, with the price potentially heading toward a positive breakout. <\/p>\n Bitcoin bullish pennant by Titan of Crypto. Source: X.com<\/em><\/p>\n<\/figcaption><\/figure>\n However, before pushing chips into a long conviction play, BTC must break and retain a position above its 200-day exponential moving average (EMA). As illustrated in the chart, Bitcoin faces resistance from all three key EMAs, namely, the 50-day, 100-day and 200-day indicators. <\/p>\n A collective reclaim above each moving average on a higher time frame chart could further strengthen the bullish case, allowing the crypto to retest its six-figure targets. <\/p>\n Bitcoin 1-day chart analysis. Source: Cointelegraph\/TradingView<\/em><\/p>\n<\/figcaption><\/figure>\nBitcoins Bitcoin eyes $137,000 by Q2-Q3, says analyst<\/h2>\n