United

Jerome Powell

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 <a rel="noopener noreferrer nofollow" target="_blank" href="https://www.cryptobreaking.com/go/etoro/">Cryptocurrency</a> markets are poised for an “up only” phase once the United States Treasury achieves its target, filling the General Account (TGA) with $850 billion, according to Arthur Hayes, co-founder of the <a rel="noopener noreferrer nofollow" target="_blank" href="https://www.bitmex.com/app/register/hUdJZJ">BitMEX</a> exchange. Hayes indicated that once this liquidity drain is complete, upward momentum in <a rel="noopener noreferrer nofollow" target="_blank" href="https://www.cryptobreaking.com/go/etoro/">crypto</a> markets could resume.
 “With this liquidity drain completed, up only can resume,” Hayes <a target="_blank" href="https://x.com/CryptoHayes/status/1969227239792525816" rel="noopener noreferrer nofollow">wrote</a> on Friday, noting the TGA’s opening balance exceeded $807 billion. Typically, funds allocated to the Treasury’s account are sequestered and not circulating in private markets, impacting overall liquidity.
 However, skepticism remains among some analysts regarding Hayes’ optimistic outlook that liquidity will flow into the broader financial markets once the goal is reached. André Dragosch, the European research head at investment firm Bitwise, responded, “Net liquidity has only a loose correlation with <a rel="noopener noreferrer nofollow" target="_blank" href="https://med.etoro.com/B10215_A67747_TClick_Scb-bitcoin.aspx?TargetURL=https://www.etoro.com/markets/btc">Bitcoin</a> and <a rel="noopener noreferrer nofollow" target="_blank" href="https://www.cryptobreaking.com/go/etoro/">crypto</a>, in my view, and I consider it somewhat irrelevant in assessing market movements.”
 Many traders expect liquidity levels to increase in the coming months, driven by the Federal Reserve’s ongoing interest rate cuts, which historically have bolstered asset prices, including <a rel="noopener noreferrer nofollow" target="_blank" href="https://www.cryptobreaking.com/go/etoro/">cryptocurrencies</a> like <a rel="noopener noreferrer nofollow" target="_blank" href="https://med.etoro.com/B10215_A67747_TClick_Scb-bitcoin.aspx?TargetURL=https://www.etoro.com/markets/btc">Bitcoin</a> and <a rel="noopener noreferrer nofollow" target="_blank" href="https://med.etoro.com/B10215_A67747_TClick_Scb-ethereum.aspx?TargetURL=https://www.etoro.com/markets/eth">Ethereum</a>. As liquidity increases, a potential rally could materialize until the Fed halts or reverses course, tightening monetary policy again.
 <h2 id="us-federal-reserve-implements-first-rate-cut-of-2025">US Federal Reserve Implements First Rate Cut of 2025</h2>
 The Federal Reserve surprised markets by slashing interest rates by 25 basis points — the first reduction since 2024. This move triggered a brief dip in <a rel="noopener noreferrer nofollow" target="_blank" href="https://med.etoro.com/B10215_A67747_TClick_Scb-bitcoin.aspx?TargetURL=https://www.etoro.com/markets/btc">Bitcoin</a>’s price below $115,000, demonstrating typical “sell the news” behavior that often accompanies rate adjustments.
 <a rel="noopener noreferrer nofollow" target="_blank" href="https://med.etoro.com/B10215_A67747_TClick_Scb-coinbase.aspx?TargetURL=https://www.etoro.com/markets/coin">Coin</a> Bureau founder Nic Puckrin cautioned that the recent correction might be temporary, noting that markets had likely priced in the rate cut well before it was announced. Federal Reserve Chair Jerome Powell emphasized that policymakers remain divided over further rate cuts in 2025, but very few traders now anticipate more than a 50 basis point reduction at the next meeting in October — with approximately 92% expecting a cut of that size according to data from the CME Group.
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 <img alt="Cryptocurrencies, Bitcoin Price, Investments, Economics, Economy, Markets" src="https://www.cryptobreaking.com/wp-content/uploads/2025/09/01996917-da12-76e8-a613-5631cf3e79f2.png" title="">
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 Source: <a target="_blank" href="https://www.cmegroup.com/markets/interest-rates/cme-fedwatch-tool.html" rel="noopener noreferrer nofollow">CME Group</a>
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 The broader outlook continues to influence <a rel="noopener noreferrer nofollow" target="_blank" href="https://www.cryptobreaking.com/go/etoro/">crypto</a> markets, as investors monitor central bank policies and their potential impact on the growing ecosystem of blockchain-based assets, including DeFi platforms and NFTs. As rate policies evolve, the trajectory of <a rel="noopener noreferrer nofollow" target="_blank" href="https://www.cryptobreaking.com/go/etoro/">cryptocurrency</a> prices—especially <a rel="noopener noreferrer nofollow" target="_blank" href="https://med.etoro.com/B10215_A67747_TClick_Scb-bitcoin.aspx?TargetURL=https://www.etoro.com/markets/btc">Bitcoin</a> and <a rel="noopener noreferrer nofollow" target="_blank" href="https://med.etoro.com/B10215_A67747_TClick_Scb-ethereum.aspx?TargetURL=https://www.etoro.com/markets/eth">Ethereum</a>—remains tightly linked to macroeconomic developments and policy signals from the US Federal Reserve.
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This article was originally published as <a href="https://www.cryptobreaking.com/crypto-markets-surge-after-us/?utm_source=rss&amp;utm_medium=syndication&amp;utm_campaign=article_footer" rel="noopener noreferrer nofollow">Crypto Markets Surge After US Treasury Reaches $850 Billion Target: Analyst Predictions</a> on <a href="https://www.cryptobreaking.com/?utm_source=rss&amp;utm_medium=syndication&amp;utm_campaign=article_footer" rel="noopener noreferrer nofollow">Crypto Breaking News</a> – your trusted source for crypto news, Bitcoin news, and blockchain updates.

Crypto Markets Surge After US Treasury Reaches $850 Billion Target: Analyst Predictions

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