The US Treasury Department has injected around $500 billion in cash into the financial markets from February until now by drawing from the Treasury General Account (TGA). This move came after reaching the $36 trillion debt ceiling on January 2, 2025, to fund government operations. Economist Thomas believes this cash influx could push the central bank’s net cash reserves to $6.3 trillion, potentially supporting Bitcoin’s price in the future, although high-risk assets have not shown significant growth yet. The TGA serves as the government’s current account at the central bank. A decrease in the TGA balance signifies cash entering the economy and an increase in circulating money. Thomas stated that withdrawals from the TGA began on February 12, reducing the balance from $842 billion to about $342 billion. Cash temporarily decreases with the start of the tax season but will resume in May. If debt ceiling negotiations continue until August, net cash could reach $6.6 trillion. An analysis by Lyn Alden shows Bitcoin has moved in alignment with global cash flow in 83% of 12-month intervals. Compared to assets like SPX and gold, Bitcoin has the highest correlation with global cash flow. Previously, a decrease in the TGA balance led to growth in speculative assets such as Bitcoin. Titan of Crypto predicts Bitcoin could reach a new high of $137,000 by July to August 2025. However, Bitcoin must break through the 50, 100, and 200-day moving averages for this target to materialize. Visit the digital currencies’ live price page to track token and cryptocurrency prices in real-time.
