Key Takeaways
- •Bitcoin rebounded as optimism grew over a U.S. funding deal and potential liquidity boost.
- •Analysts expect around $150 billion from the Treasury General Account to re-enter markets.
- •Mike McGlone remains cautious, calling for a close above $110,000 to confirm strength.
- •Other analysts say extreme bearish sentiment and rising hash rate point to a continued bull cycle.
The easing of shutdown fears and talk of a fresh stimulus initiative to boost liquidity have sparked renewed interest in risk assets — though analysts remain divided over whether the recovery will last.
Fresh Optimism Returns to Markets
According to several macro strategists appearing on “The Wolf of All Streets”, hosted by Dave Weisberger, James Lavish, and Mike McGlone, the rebound in Bitcoin is closely tied to macroeconomic expectations. They argued that once the government resumes full operations, nearly $150 billion in liquidity currently held in the Treasury General Account (TGA) could be released back into the economy — potentially lifting both traditional and digital asset markets.
Weisberger, who leads CoinRoutes, and Lavish, a macro strategist and CIO, noted that Bitcoin’s resilience in recent days underscores its growing correlation with liquidity conditions rather than short-term sentiment.
Contrasting Views Among Analysts
Not all analysts share the same enthusiasm. Mike McGlone, Senior Commodity Strategist at Bloomberg, reiterated his cautious stance, emphasizing that Bitcoin must close above $110,000 to confirm its bullish momentum. He warned that gold and other commodities appear “overextended” and may face corrections that could spill over into the crypto sector.
By contrast, Weisberger and Lavish view current sentiment data as a reason for optimism. They highlighted metrics from Grock Analytics, including social media activity and the Fear and Greed Index, which remain deeply bearish — an unusual dynamic for what could still be the early phase of a bull market.
Market Mechanics and Supply Dynamics
Beyond sentiment, Weisberger pointed to Bitcoin’s steadily rising hash rate, calling it the strongest long-term indicator of network health and future demand. He argued that the recent volatility marks a “distribution phase”, where long-term holders are taking profits without significantly impacting price due to increased liquidity in the system.
The assumption that Bitcoin’s supply is “inelastic” — meaning immune to market movements — has proven false in 2025, he noted. While some selling pressure persists, it appears to be moderating, setting the stage for what could be the next major rally if macro conditions remain supportive.
What Comes Next
Analysts agree that the next few weeks will be pivotal. With Washington’s funding deal expected to inject new liquidity into markets, risk appetite could rise across the board. However, if economic data softens or stimulus expectations fade, Bitcoin may once again test its lower support zones.
For now, the combination of a stronger hash rate, improving liquidity backdrop, and lingering bearish sentiment may give bulls a narrow but crucial advantage heading into the year’s final quarter.