Why is Bitcoin (BTC) facing near-term pressure right now?

Bitcoin is facing pressure because global liquidity is expected to tighten by 20%–25%, according to Hilbert Group CIO Russell Thompson. Less liquidity means less capital flowing into risk assets like crypto. This typically leads to weaker price performance in the short term.

What does “liquidity tightening” mean for crypto markets?

Liquidity tightening means there is less money available in the financial system to invest. This can happen when central banks or governments reduce spending or increase borrowing costs. For crypto, it often results in lower demand and increased volatility.

How could this impact Bitcoin’s price in the short term?

Bitcoin could struggle to sustain rallies and may trade sideways or lower as liquidity declines. Even positive news, like easing geopolitical tensions, may not be enough to push prices higher. This creates a more cautious trading environment.

What role do U.S. policymakers play in Bitcoin’s outlook?

Thompson expects U.S. policymakers to step in with measures like interest rate cuts, Treasury spending, and banking rule changes. These actions can inject liquidity back into the system. Increased liquidity is generally supportive for Bitcoin prices.

What is the Treasury General Account (TGA) and why does it matter?

The TGA is the U.S. government’s main cash account at the Federal Reserve. When funds are spent from it, liquidity increases in the financial system. This can boost risk assets, including Bitcoin.

What is the supplementary leverage ratio (SLR)?

The SLR is a rule that determines how much capital banks must hold relative to their assets. If relaxed, banks can lend more money. This can increase liquidity and support broader market activity.

How has Bitcoin performed recently?

Bitcoin peaked above $126,000 in late 2025 before dropping about 50% to around $63,000 in early 2026. It has since stabilised near $75,000. This reflects a shift from strong bullish momentum to a more macro-driven market.

Is the medium-term outlook still bullish for Bitcoin?

Yes, Thompson expects Bitcoin to be higher by the end of the year. He believes improving liquidity conditions will support prices. This is a forecast, not a guaranteed outcome.

Cryptocurrency

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Bitcoin faces pressure as liquidity tightening looms

Written by Jon CuthbertPublished Apr 21, 2026, 12:00 AM

Bitcoin could face near-term headwinds as global liquidity tightens by up to 25%, according to Russell Thompson.

Thompson said tightening financial conditions are likely to weigh on risk assets even if geopolitical tensions ease, limiting the strength of any short-term rally.

“Even with a resolution quickly in Iran, I do not believe that risk assets will rally for any sustainable time without outside help,”

Thompson said.

He expects U.S. policymakers to respond with measures such as supplementary leverage ratio reform, Treasury General Account drawdowns and potential interest rate cuts to inject liquidity.

Bitcoin has already experienced a volatile cycle, falling roughly 50% from its late-2025 peak above $126,000 before stabilising around $75,000 in recent months.

Despite near-term pressure, Thompson maintains a bullish outlook, forecasting higher bitcoin prices by year-end as liquidity conditions improve.

He added that longer-term dynamics could support new all-time highs by 2027 as policy support and market conditions evolve.

At the time of reporting, Bitcoin price was $75,607.60.