Summary
- With the highly probable transition of Fed leadership from Jerome Powell to Kevin Warsh, a paradigm shift in monetary policy is anticipated, recognizing Bitcoin as ‘digital gold’ from a long-term fundamental perspective.
- As the ‘Clarity Act’ gains momentum in the US, stablecoin yields are expected to be legalized, paving a structural highway for massive Wall Street capital, such as Morgan Stanley, to enter the DeFi ecosystem.
- Bitcoin recorded a remarkable 11.87% monthly gain in April, and with the SSR indicator hitting a historical pivot of 9.6 alongside the massive $18.72 billion release from the TGA, the market is preparing for a powerful reclaim of the $100,000 milestone.
1. Issue
Issue 01. Fed Leadership Transition (Kevin Warsh) and the Paradigm Shift in Monetary Policy
Ahead of the end of Jerome Powell’s term in mid-May, former Fed Governor Kevin Warsh is emerging as the leading candidate for the next Chair. While Warsh has hawkish tendencies, criticizing the management of a massive balance sheet, he is also a strong Bitcoin advocate who has stated that “Bitcoin is the new gold for the younger generation.” His potential rise to the top of the Fed represents a fundamental boon; despite short-term tightening risks, it promises to resolve the ‘regulatory overhang’ on cryptocurrencies and induce a flood of capital when a rate-cut cycle aligned with AI-driven productivity gains arrives.
Issue 02. Progress on the ‘Clarity Act’ and the Structural Reorganization of Traditional Finance Capital
With a May review of the ‘Clarity Act’ announced under the leadership of Senate Banking Committee Chairman Tim Scott, White House officials have confidently stated that the crypto market will “take off like a rocket ship.” A compromise on the payment of stablecoin yields, a core issue of the bill, has been reached, integrating the DeFi reward system into a legal framework. In tandem, Morgan Stanley has launched its own spot Bitcoin ETF, and Visa’s stablecoin settlement volume has surged by 500%, illustrating a fierce structural reorganization where trillions of dollars of traditional capital are merging with physical settlement infrastructure.
Issue 03. TGA Liquidity Release and the Historic Loading of SSR Dry Powder
The US Treasury General Account (TGA) balance, which had been constricting market liquidity, abruptly dropped by a massive $18.72 billion in a single day, shifting into a ‘Net Liquidity Release’ regime. Concurrently with this macro liquidity relief, the Stablecoin Supply Ratio (SSR), representing the dry powder waiting inside the blockchain, plummeted to a historic ‘Structural Pivot’ line of 9.6. The massive sidelined Tether (USDT) ammunition has condensed into explosive energy right before launch, forming a colossal liquidity defense wall below the $78,000 level.
2. Bitcoin Market Status Following the Issues
The Bitcoin market has successfully completed a healthy shakeout, weathering geopolitical crises and a $300 million cascading liquidation of long positions triggered by a $14 billion options expiry. As a result, it achieved a phenomenal 11.87% monthly gain in April. The Fear & Greed Index has also rebounded from extreme fear to 39, proving that smart money has entered a phase of ‘quiet accumulation’. A dense cluster of limit buy orders from Wall Street institutions has been confirmed at the $78,072 level (Coinbase), demonstrating flawless defensive strength. Driven by the TGA liquidity release and the SSR reaching its historical pivot, the market is primed for a powerful rocket rally towards price discovery above $100,000.
3. References
Visit TigersPost.com to check the daily Bitcoin market analysis based on global on-chain data.
(Disclaimer: This report is an expert-level market diagnosis based on the latest provided data and market indicators and does not constitute investment advice. Virtual asset investments must be made at your own discretion and responsibility.)
TigersPost #Bitcoin #BTC #KevinWarsh #FedLeadership #ClarityAct #SSRPivot #TGALiquidity #BitcoinMarket