Bitcoin may be on the verge of a significant price increase as Federal Reserve bank reserves drop to $2.93 trillion, according to analyst Adam Livingston. The Kobeissi Letter, a macro markets newsletter, indicates that this decline could lead to tighter dollar liquidity and heightened sensitivity in short-term funding markets. Livingston attributes the cash squeeze to U.S. Treasury rebuilding, Federal Reserve's quantitative tightening, and increased currency circulation. Livingston suggests that these factors could prompt the Fed to ease liquidity, a move historically associated with Bitcoin price rallies. Furthermore, he highlights that consistent demand from spot Bitcoin ETFs is reducing the available tradable supply, potentially enhancing price gains.