Massive Upside for Bitcoin?

Adam Livingston suggests that Bitcoin could experience significant growth as bank cash reserves at the Federal Reserve have dropped to approximately $2.93 trillion, nearing what he calls a 'danger zone.' This decrease indicates tightening dollar liquidity, which Livingston believes may prompt the Federal Reserve to slow its balance-sheet runoff, leading to a more favorable environment for Bitcoin. He identifies three forces that are reducing cash in the banking system: the U.S. Treasury's rebuilding of its cash balance, the Fed's quantitative tightening, and increasing Fed liabilities. Livingston argues that when liquidity tightens and markets become jittery, regulatory bodies tend to intervene to maintain stability, historically coinciding with spikes in Bitcoin value. Moreover, he points out that the rise of spot bitcoin exchange-traded funds is shrinking available supply, posing a potential for further price increases as liquidity improves.

Source 🔗