💸 Bitcoin Steps Aside: Why U.S. Treasury Cash Flow Now Controls the Crypto Cycle
Right now, Bitcoin isn’t the most important chart to watch — U.S. government liquidity is.
Crypto analyst Kyle Chassé highlights a key shift: the U.S. Treasury General Account (TGA) has surged toward $1 trillion, quietly draining dollars from the financial system. When the Treasury rebuilds its cash balance, liquidity is pulled out, and risk assets like Bitcoin slow down — exactly what we’re seeing now.
🔍 Why this matters for crypto
A high TGA = fewer dollars flowing into markets
Less liquidity = weaker momentum for BTC and altcoins
This is not a demand problem — it’s a liquidity pause
📈 The bullish flip is forming To avoid economic stress heading into 2026, the government will likely draw the TGA back down, potentially releasing $150–$200B into banks. At the same time:
Quantitative Tightening (QT) has stopped
The Fed has delivered its third rate cut of 2025
Around $40B/month is flowing back via Treasury bill purchases
This shift already followed Bitcoin’s deepest pullback of the cycle (~35%), a zone that historically marks accumulation — not exits.
🏦 Institutions are moving early Even traditionally conservative giants like Vanguard and Charles Schwab are rolling out crypto exposure to millions of users. Liquidity leads price — and smart money positions before the headlines change.
Bitcoin hasn’t failed. Liquidity just hasn’t returned — yet.
