Bitcoin May Be Facing Its ‘Final Drop’: The Real Liquidity Squeeze Is Already Unfolding
🧵A powerful breakdown by SoSoValue Research Comminty Member ET(Agarwood Capital) reveals how structural USD liquidity squeeze is putting pressure on risk assets:
·💰 TGA balance surges toward $1T, draining market liquidity
·⚠️ SOFR–FDTR spread spikes +30bps, signaling funding stress
·🏦 Fed forced to restart overnight repos, injecting ~$30B liquidity (first since 2019)
With the U.S. government shutdown stretching past historical highs, the Treasury has been pre-emptively “hoarding cash” via heavy issuance — locking dollars in TGA and starving the system of liquidity. BTC is simply the most sensitive asset to react.
But this setup may also mark a turning point — once spending resumes post-shutdown, TGA unwinds, and liquidity returns, crypto could be staring at the “final flush” before recovery. As now markets expect a deal before Nov 15 (pre-Thanksgiving recess) to terminate the shutdown.
📊 Full breakdown available via: https://t.co/wg5FwJiYlb (Multi-language support)
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