Analyst: US Treasury bond sales could drain liquidity, push BTC lower

A large-scale fundraising effort by the U.S. Treasury could absorb $150 billion in market liquidity, potentially leading to a further decline in BTC, according to Michael Kramer, founder of Mott Capital Management. CoinDesk reported on his comments, in which he described BTC as a better indicator of liquidity than most assets. Kramer noted that the Treasury's government bond issuance, scheduled from May 28 to June 5, could shift approximately $150 billion in market funds into government debt. "Cryptocurrency is generally strongest when liquidity is abundant," he explained. "Conversely, when liquidity is withdrawn, even temporarily, investors tend to become more cautious about risk assets." While this does not guarantee a sharp drop, Kramer emphasized that BTC is not an asset that moves independently and that macroeconomic factors like increased government borrowing can have a significant impact on its price.