Liquidity Conditions and Policy Changes

The AE Global Liquidity Indicator remains flat at around $130 trillion, with the 3-month RoC maintaining a bullish bias.

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Interestingly, while the RRP is at its low levels and the MOVE Index shows continued stabilization, last week saw a $36 billion Treasury rundown.

Could this mark the beginning of the anticipated liquidity events we talked about recently?

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This suggests that despite the lack of significant upward momentum, current liquidity conditions remain supportive which, in the near term, may be a plus for assets like Bitcoin.

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One development worth tracking is who Trump appoints to the position of Treasury Secretary.

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The current two front-runners are Scott Bessent and Howard Lutnick. Both of these individuals have proven to be crypto-friendly. Of course, Lutnick was with Tether, which may mean his appointment could lead to quite a bit more volatility in the market, possibly more bullish movements.

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The new Treasury Secretary will oversee national debt and fiscal policy, shaping the economic landscape. Replacing Janet Yellen with a Wall Street figure signals a likely shift toward market-friendly policies-a positive for Bitcoin and broader virtual currencies. Such a pivot could accelerate crypto adoption and deregulation.

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The potential for aggressive market expansion under a crypto-friendly Treasury could have profound implications for digital assets that the crypto community has been looking for.