Bank Reserves Drive Recent Bitcoin Strength Amid Global Tensions

Qinbafrank posted on X that the recent strength in Bitcoin's performance can be attributed to the upward trend in U.S. bank reserves, which represent dollar liquidity. The reserves have increased from $2.96 trillion at the end of March to $3.01 trillion last weekend, and have now reached $3.037 trillion. Previous discussions highlighted the relationship between bank reserves and dollar net liquidity, emphasizing that bank reserves are a crucial component and variable of dollar liquidity. The gradual recovery of bank reserves is quickly reflected in Bitcoin, which is highly sensitive to liquidity changes. Meanwhile, the U.S. stock market is affected by the situation in Iran and the emotional impact of private credit redemption waves. The rise in bank reserves is directly linked to the Federal Reserve's Reserve Management Purchase (RMP) over the past two weeks, which has expanded the balance sheet, and a decrease in spending from the Treasury General Account (TGA). Further observation of the bank reserves' trend is necessary.