Bitcoin to $137K? US Treasury’s Cash Splash Sparks Crypto Frenzy! 🚀💰

by

Ah, the US Treasury, that grand institution of financial wizardry, has been busy squirting $500 billion into the markets since February, all thanks to its Treasury General Account (TGA). This, of course, was after the government hit the $36 trillion debt ceiling on January 2, 2025—a number so large it makes one’s head spin like a roulette wheel. 🎰

Enter Tomas, the macroeconomic financial analyst, who, with the air of a man who has seen too many spreadsheets, declared that this liquidity surge has pushed the net Federal Reserve liquidity to a staggering $6.3 trillion. “Bitcoin,” he said, stroking his metaphorical beard, “may yet benefit from this, even though risk assets have been as lively as a sloth on a Sunday afternoon.” 🦥

The TGA, you see, is the government’s checking account at the Federal Reserve, where it keeps its petty cash for things like paying bills and collecting taxes. When the TGA balance drops, it means the money has been unleashed into the wild, frolicking in the broader economy like a herd of cash-hungry gazelles. 🦌

Tomas, ever the explainer, noted that the TGA drawdown began on February 12, after the “extraordinary measures” were exhausted. The balance has since plummeted from $842 billion to a mere $342 billion, with the targeted liquidity expected to balloon to $600 billion by the end of April. “But wait,” he added, “the tax season will temporarily suck some liquidity out, like a vacuum cleaner on a mission. Fear not, for the drawdown shall resume in May!” 🧹

According to Lyn Alden, a financial analyst with a penchant for research, Bitcoin has historically moved in sync with global liquidity 83% of the time. Her study, aptly titled “Bitcoin: The Global Liquidity Barometer,” compared Bitcoin to other major assets like SPX, gold, and VT. Lo and behold, Bitcoin emerged as the undisputed champion of correlation. 🏆

Past TGA drawdowns in 2022 and 2023 have already fueled speculative assets like Bitcoin. So, a $600 billion boost, plus billions more over Q2-Q3, could send BTC’s value soaring—provided the market doesn’t throw a tantrum. 📈

And then there’s the anonymous crypto trader, Titan of Crypto, who, with the confidence of a man who has never lost a bet, predicted that Bitcoin could hit a new all-time high of $137,000 by July-August 2025. In a recent X post, he pointed to a bullish pennant pattern on the daily chart, suggesting a positive breakout is on the horizon. 🚩

But before you mortgage your house to buy Bitcoin, remember this: BTC must first break and hold above its 200-day exponential moving average (EMA). As the chart shows, Bitcoin is currently wrestling with resistance from the 50-day, 100-day, and 200-day EMAs. A collective reclaim above these on a higher time frame chart could strengthen the bullish case, paving the way for Bitcoin to retest its six-figure targets. 🎯

Read More

2025-04-14 22:32