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Bitcoin could skyrocket to $137,000 in Q3 if the U.S. continues to pump liquidity

04/15/2025

Since February 2025, the U.S. Department of the Treasury has injected $500 billion into the market by withdrawing funds from the Treasury General Account (TGA) to finance the government after surpassing the debt ceiling of $36 trillion.

Expert Tomas stated that this has pushed the net liquidity of the Federal Reserve (Fed) to $6.3 trillion, which could support Bitcoin prices if the trend continues.

The TGA is the government's payment account at the Fed. When the TGA balance decreases, the amount of cash in the market increases. Since February 12, this balance has decreased from $842 billion to $342 billion. An additional $600 billion is expected to be injected into the financial system by the end of April.

Although tax season may temporarily reduce liquidity, Tomas predicts that withdrawals will continue into May. If debt ceiling negotiations extend into August, net liquidity could reach $6.6 trillion – the highest level in many years.

According to analyst Lyn Alden, Bitcoin has an 83% correlation with global liquidity over a 12-month cycle, higher than SPX, gold, and VT. Previous liquidity injections from the TGA have also boosted Bitcoin prices.

Trader “Titan of Crypto” predicts BTC could reach $137,000 by July–August 2025 if it breaks resistance from the 50, 100, and 200-day EMA averages.

Note: This article is for informational purposes only and is not investment advice.

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