Fed Governor Waller was clear this week, linking potential tariff repercussions to sharper rate reductions. He cautioned that the economic fallout from such actions could severely impact output and employment.

If the situation escalates, Waller indicated he would support quicker and more aggressive policy rate cuts than before.

This comes as Bitcoin surges beyond $85,000, disregarding last week’s drop to $74,500. The 6.79% weekly increase has traders abuzz, marking its most significant rise since January 2025.

Fed Governor Waller: US Treasury Liquidity Spurs Buying Pressure

A contributing factor to Bitcoin’s recovery is the infusion of over $500 billion in liquidity by the US Treasury since February. The Treasury’s capital release, intended to facilitate government operations amid debt ceiling discussions, has inflated net liquidity in financial markets to $6.3 trillion.

Analysts at 99Bitcoins suggest that if negotiations regarding the debt ceiling linger into August, liquidity could escalate even further, possibly reaching $6.6 trillion. This cash influx enhances the attractiveness of risk assets like Bitcoin, with financial expert Lyn Alden referring to it as a “Global Liquidity Barometer”.

Diminishing Treasury yields are also aiding Bitcoin’s bullish momentum. These falling yields, combined with tariff exemptions on essential imports like semiconductors, have reduced the attractiveness of fixed-income assets, driving investors towards alternatives such as BTC.

Technical Analysis Signals a Bullish Path

Bitcoin remains above $84,200, struggling with key resistance just north of $85,500. Analysts suggest that if this resistance is breached, a climb to $87,500 or even $90,000 could follow. BTCUSD Developers like Titan of Crypto are making bold predictions, estimating a price of $137,000 by mid-2025, supported by bullish patterns observed in market charts.

The Road Ahead

Bitcoin’s rally has been impressive, yet the market appears cautious. Futures premiums and options indicate that traders are hedging their positions and are not quite ready to celebrate a break past $90,000. Meanwhile, corporate adoption and macroeconomic factors, such as Treasury liquidity, are setting the stage for sustained growth.

The primary objective now is to clear established resistance. Break this barrier, and Bitcoin could become a preferred asset for both corporate giants and retail enthusiasts. The stage for 2025 is being set already.

Key Takeaways

• Fed Governor Waller’s comments link potential tariff impacts to quicker rate cuts, highlighting worries over possible economic devastation.
• A notable driver of Bitcoin’s rebound is the injection of over $500 billion in liquidity by the US Treasury since February.
• The primary goal now is to penetrate the established $100k resistance level once more.