The U.S. Treasury's plan to withdraw approximately $150 billion in liquidity from the financial system may exacerbate recent selling pressure on Bitcoin, according to Michael Kramer of Mott Capital Management. The Treasury's operations, scheduled from May 28 to June 5, include significant settlements that could drain liquidity, potentially impacting Bitcoin, which often reflects liquidity conditions more acutely than other assets.
Kramer highlighted that the Treasury's bond issuance, which channels cash from investors into the Federal Reserve, reduces available liquidity for other investments. This withdrawal could lead to increased caution among investors, particularly affecting risk assets like Bitcoin. Bitcoin has already declined about 11% from its early-month high of over $82,500, recently falling below the $75,000 support level, signaling tightening liquidity conditions.
U.S. Treasury Liquidity Withdrawal Could Pressure Bitcoin Prices
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