The TGA Effect and U.S. Tax Season – The Invisible Drags on BTC's Growth
Although Bitcoin recently touched $75,000, analysts are seeing a liquidity "gray zone" in the latter half of April. Two main factors include the U.S. tax filing season and the increasing balance of the Treasury General Account (TGA). #Colecolen
During tax season, individuals and organizations often tend to liquidate assets for cash to pay taxes, which inadvertently creates short-term selling pressure. More importantly, the U.S. Treasury's plan to raise the TGA balance above $1 trillion means a significant amount of liquidity will be withdrawn from the banking system and financial markets. For a liquidity-sensitive asset like Bitcoin, this is a signal that requires special attention. Growth could be "suffocated" if circulating cash is abruptly constricted. Therefore, investors should prepare for a sideways or slight correction scenario in the short term to absorb these liquidity shocks. (DYOR) $BTC $BB $ZAMA
