U.S. Treasury’s $500B liquidity injection could propel Bitcoin higher, analysts say

Since February, the U.S. Treasury has injected $500 billion into the financial system by drawing down its Treasury General Account (TGA), raising net Federal Reserve liquidity to $6.3 trillion, according to Cointelegraph. Macroeconomic analyst Tomas noted on X that the TGA balance has fallen from $842 billion to around $342 billion, effectively releasing liquidity into the economy. While tax season may temporarily slow this flow, Tomas expects the drawdown to resume in May. If debt ceiling talks extend into August, net liquidity could reach a multi-year high of $6.6 trillion—potentially fueling further gains for Bitcoin (BTC). A study by financial analyst Lyn Alden found that BTC has shown a strong correlation with global liquidity over the past 12 months. Given similar patterns during TGA drawdowns in 2022–2023, a fresh $600 billion liquidity boost across Q2–Q3 could support another leg up for BTC, provided market conditions remain stable.