base-pidgin

The US economy's recent strength, combined with liquidity injections from the Fed and potential Treasury General Account (TGA) releases, could lead to a weaker dollar and increased interest in riskier assets like crypto and Bitcoin. Key points:

- Fed liquidity has surged by $395 billion since the start of the year, the largest ten-day hike in two years.
- A weaker dollar could make Treasuries less attractive and drive investors towards assets like cryptocurrencies, often viewed as hedges against inflation and devaluation.
- The Treasury General Account (TGA) may release significant liquidity into the market as the US approaches its debt ceiling.
- While the surge in liquidity is a bullish sign, investors remain cautious due to the approaching debt ceiling and potential for rising Treasury yields.
- The new administration's policies, including potential tax cuts, could further impact the market and potentially devalue the dollar.