Is Treasury Liquidity Fueling Bitcoin’s Rally? What the U.S. Bond Market Means for Crypto

Bitcoin appears to have found a new macro catalyst. After languishing around $60K-$65K for weeks, BTC exploded past $70,000 when the U.S. Treasury announced support for the government bond market. That means Treasury liquidity may be becoming a critical driver of crypto prices.

What Is Treasury Liquidity? When discussing Treasury liquidity, there are actually two separate concepts.

The first refers to the general liquidity of the Treasury market: that is, how easily one can buy or sell government bonds for a given size trade without sharply affecting the price. Read more: Why Is Crypto Up Today?

Bitcoin Hits $71k as Ethereum Surges Past $2,300 Meanwhile, the second concept refers to broader dollar liquidity in the financial system.