Is Bitcoin About to Go Bonkers? You Won’t Believe What the Fed Just Did! 🤯

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Oh, gather ’round, dear readers, for a tale of money and mischief! It seems the US Treasury General Account (TGA) has decided to throw a grand party, and guess who’s invited? That’s right—our old friend Bitcoin! 🎉 Analysts are buzzing like bees in a honey pot, speculating that this cash splash could be the spark that sends Bitcoin soaring to the moon! 🚀

Fed’s “Not QE, QE” – What a Whopper!

Now, hold onto your hats! Our pal Tomas (@TomasOnMarkets) has spilled the beans on this cheeky little scheme. He claims, “Not QE, QE” has officially kicked off! A whopping liquidity injection—up to $842 billion, mind you—has begun to flow like chocolate from a fountain! 🍫 But wait, it’s not quite what it seems. It’s like a magician pulling a rabbit out of a hat, but the rabbit is just a very confused squirrel! 🐿️

Why, you ask? Well, the US is in a bit of a pickle with a $36 trillion debt limit! No new debt can be issued until the lawmakers stop bickering like children over a toy. So, the Treasury is dipping into the TGA cookie jar to keep the government running. And just like that, $842 billion is set to make its grand entrance into the financial circus! 🎪

Tomas, the ever-watchful hawk, noted that this “train” of TGA spending started chugging along on February 12. “All aboard!” he cried, as the cash train rolled out of the station, destined for who-knows-where! 🚂

But here’s the kicker: while the Treasury is throwing money around like confetti, the Federal Reserve is busy tightening its belt, rolling off assets at a rate of $55 billion a month. It’s like trying to fill a bathtub while someone’s pulling the plug! 🛁

And what about those money market funds? They’re in a bit of a bind too! With fewer T-bills to gobble up, they might just park their cash in the Fed’s Reverse Repo facility, draining liquidity faster than a kid can down a fizzy drink! 🥤

Now, let’s not forget the political circus! House Republicans are trying to tie “trillions of dollars” in tax cuts to raising the debt ceiling. It’s like trying to convince a cat to take a bath—good luck with that! 🐱

Will Bitcoin Strike Gold? Or Just Fool’s Gold?

For our Bitcoin traders, this rollercoaster of liquidity is like a thrilling ride at the fair! Historically, Bitcoin loves a good cash injection, and while the Fed is still tightening its grip, this TGA cash flood could just be the ticket to a wild ride! 🎢

But how much of this “Not QE, QE” will trickle down to Bitcoin? That’s the million-dollar question! As the drama unfolds in Washington, Bitcoin enthusiasts are glued to their screens, watching every little wiggle in the Fed’s liquidity charts, hoping for a miracle! ✨

As of now, Bitcoin is strutting its stuff at a dazzling $96,424. Will it break out? Only time will tell! ⏳

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2025-02-17 19:53