Analysts believe bitcoin is poised for significant growth. Thanks to continued intervention by the US Treasury, it could reach as high as $137,000 by the third quarter of 2025. The key to this will be the evolution of global liquidity.
US money is flowing into the market
Since February, the US Treasury has released around $500 billion from its general account (TGA) into the financial system to support government operations ahead of the debt ceiling. Analyst Tomas notes that the move has increased the Federal Reserve’s net liquidity to $6.3 trillion, creating a favorable environment for risk assets such as bitcoin.
The balance on the TGA fell from $842 billion to $342 billion, marking a significant release of cash into the economy. By the end of April, liquidity could rise to $600 billion, and if debt ceiling negotiations continue through August, net liquidity could reach $6.6 trillion. In the past, it is situations like this that have helped cryptocurrencies grow.
Tech and data point to growth
In her study, financial analyst Lyn Alden documents that bitcoin tracks global liquidity 83% of the time over a 12-month period. The research shows that BTC has the highest correlation with the movement of money in the markets of any asset tracked – even higher than stocks or gold.
Technical signals also contribute to bitcoin’ s growth. Anonymous trader Titan of Crypto has warned of a so-called bull flag that could lead to a breakout. If bitcoin breaks the 200-day moving average and stays above it, it could reach the $137,000 target by July or August 2025.
