Bitcoin surge to $137K by Q3 possible if US Treasury continues liquidity injections — Analysts

Key Points

  • Bitcoin could reach $137,000 by Q3 2025 if the US Treasury continues liquidity injections.
  • The US Treasury has injected $500 billion into financial markets since February, boosting net Federal Reserve liquidity to $6.3 trillion.
  • The Treasury General Account (TGA) balance has dropped from $842 billion to $342 billion, releasing liquidity into the economy.
  • Bitcoin has historically moved in line with global liquidity 83% of the time over a 12-month period.

Summary

The article discusses the potential impact of US Treasury liquidity injections on Bitcoin's price, suggesting that if the Treasury continues to inject funds into financial markets, Bitcoin could surge to $137,000 by the third quarter of 2025. Since February, the US Treasury has injected $500 billion into the markets, increasing the net Federal Reserve liquidity to $6.3 trillion. This liquidity comes from drawing down the Treasury General Account (TGA), which has seen its balance decrease from $842 billion to $342 billion, thereby releasing more cash into the economy. Analyst Tomas highlighted that this liquidity surge could support Bitcoin's price, especially if debt ceiling talks extend into August, potentially pushing net liquidity to a multi-year high. Historical data shows Bitcoin's price has a strong correlation with global liquidity, moving in line with it 83% of the time over a 12-month period. However, Bitcoin's immediate future also depends on its ability to break through key technical resistance levels.

cointelegraph
April 15, 2025
Crypto
Read article

Related news