US Treasury Silently Rebuilt $500 Billion, Will It Impact Bitcoin, Crypto And Stocks Rally?

The US Treasury Dept has silently rebuilt its cash balance to $500 billion within a month of the Biden-McCarthy debt ceiling deal. Crypto and stock markets continue to move higher as the Treasury account refill is not yet impacting the net US dollar liquidity. The global crypto market cap increased to $1.20 trillion, supported by strong trading volumes. Bitcoin (BTC) and Ethereum (ETH) price jumped yearly high as financial giants such as BlackRock and Fidelity lead the crypto bandwagon.

Crypto and Stocks Continue To Gain As US Treasury Adds $465B

The Treasury General Account (TGA) refill is not impacting risk assets as the US dollar net liquidity remains sufficient. TGA balance during the debt ceiling deal was below $40 billion, now it’s more than $465 billion. The US Treasury is building its account balance without impacting financial markets and US dollar liquidity.

According to the U.S. Treasury Department auction schedule, it will auction billions in bills, bonds, and notes in July. The US Treasury looks to add another $1 trillion over the next six months.

With US dollar liquidity remaining above level, the crypto and stock markets continue to rally higher. Bitcoin (BTC) price hit a high of $31,400 this week. Meanwhile, the stock markets closed Friday on a positive note, with Dow Jones 0.84% higher, the S&P 500 added 1.23%, and the Nasdaq gained 1.60%. Moreover, the US PCE inflation falls to 4.6%, indicating the possibility of further upside move.

Crypto analysts and Bloomberg analysts are bullish on Bitcoin price hitting $40,000 in July or early August amid a flurry of spot Bitcoin ETF applications and institutional inflow.

Bitcoin Price

BTC price jumped 15% in June. The price is currently trading at $30,445, down 1% in the last 24 hours. The 24-hour low and high for Bitcoin are $29,600 and $31,093, respectively. Meanwhile, ETH price jumps 2%, currently trading at $1919.

Popular analyst Michael van de Poppe said the crypto market just overreacted to the report of the US SEC calling the recent Bitcoin ETF filings inadequate. He predicts further upside in BTC price to $35k-$40k.

Today wasn't bad news.

The markets overreacted by a ton.

No need, the bull is here for #Bitcoin, continuation seems very likely from here as all lows are taken.

$35-40K is on the cards.

— Michaël van de Poppe (@CryptoMichNL) June 30, 2023