The Bitcoin Layer Fed Liquidity Crunch Explained: Repo, QT, & Bitcoin’s Reaction
8 snips
Nov 4, 2025 Nik dives into the recent funding stress in global liquidity, highlighting how the Treasury's growing General Account affects reserves. He discusses early warning signs from repo spreads and the relationship between dollar strength and Bitcoin’s price, now hovering below $108,000. The tension in the repo market is explored, revealing how tighter liquidity impacts risk assets and might shape the next phase of the credit cycle. Tune in for insights on chart patterns, technical levels, and what it all means for Bitcoin's future!
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Critical Bitcoin Support Zones
- Bitcoin recently fell below the 108–112k congestion zone that dominated 2025 trading behavior.
- Key bull-market support levels sit near 95–96k and 87k and will define whether the trend remains intact.
Dollar Strength Pressures Bitcoin
- The U.S. dollar broke out above 99.5 and is pressing toward 100, weighing on Bitcoin and risk assets.
- Nik Bhatia links dollar strength to Bitcoin's recent weakness rather than equity market moves.
TGA Growth Is Liquidity Negative
- Treasury General Account inflows draw cash out of reserves and the private sector, tightening liquidity.
- TBL measures liquidity with an asset-based model that treats an expanding TGA as liquidity negative.
