A major financial shakeup is brewing — 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 — and crypto markets are watching very closely.
🔍 What’s the Deal?
The SLR requires banks to hold a certain amount of capital against assets like U.S. Treasuries. But under Bessent’s plan, Treasuries would be excluded from this calculation, giving banks more room to lend, invest, and move capital — essentially injecting liquidity without printing money. Analysts are calling it a “regulatory stimulus” equivalent to 50x the Fed’s current monthly tightening pace!
🔥 Bitcoin’s Big Moment?
As yields on Treasuries drop, traditional money-market instruments become less attractive. Where does that liquidity go? High-yield, risk-on assets — and that includes Bitcoin. With OTC BTC inventories shrinking, it’s clear smart money is already loading up in anticipation.
📉 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.
⚠️ 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
