Why Bitcoin pumped today: How US liquidity lifted BTC above $90,000 and ETH over $3,000

The crypto market rallied on November 27th, with Bitcoin reclaiming $90,000 and Ethereum surpassing $3,000, breaking a month-long stagnation. The primary catalyst was a structural shift in US liquidity following the end of a six-week government shutdown, which had previously drained about $621 billion from the financial system. Ark Invest noted that the Treasury General Account (TGA) balance, currently near $892 billion (well above the $600 billion baseline), signals an imminent, massive cash deployment back into the economy as the TGA normalizes. This liquidity injection is expected to buoy risk assets.

This fiscal tailwind is coupled with a pivot in monetary policy, as several Federal Reserve officials signaled a willingness to cut rates, dissolving the "higher for longer" narrative and increasing near-term rate reduction probability to 90%. This dovish shift aligns with the scheduled conclusion of Quantitative Tightening (QT) on December 1st, further reducing liquidity headwinds.

Institutional flows showed a rotation toward Ethereum, which saw net inflows, while Bitcoin inflows were more modest, suggesting the bounce is a "repair" operation rather than speculative froth, as open interest and funding rates remain relatively calm. Key risks include a hot inflation print forcing the Fed to reverse its dovish stance or whales using the rally as exit liquidity. If Bitcoin holds $90,000, the next test is $95,000; otherwise, a retreat to $84,000 is possible.

(Source：CryptoSlate)