Bitcoin may be front-running the next US liquidity wave
Crypto may already be front-running the next wave of U.S. liquidity.
$BTC has surged from roughly $62,000 to above $81,000 in less than a week, a gain of around 30%.
The rally began after Treasury doubled long-term bond buybacks to at least $4 billion per operation, while reports of Treasury Secretary Scott Bessent potentially having substantial TGA firepower have added to the liquidity narrative.
If Treasury cash is deployed, money would leave its Federal Reserve account and enter the financial system, potentially supporting bonds, lowering yields and pushing capital toward risk assets.
This is not QE, and Treasury would eventually need to rebuild its cash balance. But in the short term, markets could experience the liquidity injection similarly to temporary monetary easing.
Bitcoin appears to be pricing in that possibility early.