Treasury’s $935B cash pile could flood markets with liquidity, and crypto is already celebrating

The US Treasury is sitting on $935 billion in cash, and Treasury Secretary Scott Bessent apparently wants to put it to work. The department doubled its maximum debt buyback size to $4B, a move that amounts to the government effectively saying “we’re going to inject liquidity whether you’re ready or not.” Crypto markets didn’t need to be told twice. Bitcoin climbed near $79K, Ethereum traded above $2,490, and Solana held steady around $97, with risk assets broadly catching a bid. What’s actually happening with the Treasury’s cash Think of the Treasury General Account, or TGA, as the federal government’s checking account. When the Treasury spends down that balance, the cash doesn’t vanish. It flows into the banking system, where it becomes reserves that banks can lend, invest, or otherwise deploy into financial markets. Debt buybacks are one mechanism for this. The Treasury purchases its own previously issued bonds from the open market, handing cash to bondholders who then need somewhere else to park that money. By doubling the maximum buyback size to $4B, the Treasury signaled it’s willing to move more aggressively on this front. The $935B sitting in the TGA represents a substantial...