A major financial shakeup is brewing â and Bitcoin could be the biggest winner. U.S. Treasury Secretary Scott Bessent has proposed a game-changing adjustment to the Supplementary Leverage Ratio (SLR), potentially unlocking $250 billion in bank capital â and crypto markets are watching very closely.
đ Whatâs the Deal?
The SLR requires banks to hold a certain amount of capital against assets like U.S. Treasuries. But under Bessentâs plan, Treasuries would be excluded from this calculation, giving banks more room to lend, invest, and move capital â essentially injecting liquidity without printing money. Analysts are calling it a âregulatory stimulusâ equivalent to 50x the Fedâs current monthly tightening pace!
đ„ Bitcoinâs Big Moment?
As yields on Treasuries drop, traditional money-market instruments become less attractive. Where does that liquidity go? High-yield, risk-on assets â and that includes Bitcoin. With OTC BTC inventories shrinking, itâs clear smart money is already loading up in anticipation.
đ Benchmark 10-year Treasury yields fell under 3.95% following the announcement, while Bitcoin is hovering near $109K, with bulls eyeing much higher levels if this liquidity surge plays out.
â ïž While the move is bullish short-term, some critics warn that without deeper fiscal reforms, it may simply be a temporary sugar rush. Still, for now, Bitcoin might just be looking at one of its most powerful catalysts in years.
#Bitcoin #LiquidityShock #CryptoNews #SLR
