A fund manager warns upcoming U.S. Treasury operations could remove $150 billion in liquidity, pressuring bitcoin prices.
A fund manager has warned that an upcoming $150 billion liquidity drain from U.S. Treasury operations could push bitcoin prices sharply lower. The drain stems from Treasury settlements, which reduce cash available for investments like cryptocurrencies.
Bitcoin has already fallen 11% from recent highs, breaking key support near $75,000. The fund manager argues bitcoin acts as a leading liquidity indicator, making it particularly vulnerable to liquidity shifts.
Treasury operations involve selling bonds and bills, with proceeds moved to the Federal Reserve, temporarily reducing liquidity in the banking system. Heavy issuance periods can amplify these effects.