Fund manager Michael Kramer has warned that bitcoin could fall significantly as a $150 billion liquidity drain from upcoming U.S. Treasury operations puts pressure on risk assets. Treasury cash management operations of this scale typically absorb capital from financial markets, reducing the pool of money available for speculative investments like cryptocurrencies. Kramer's concern centres on the timing, with bitcoin trading at elevated levels that could amplify any sell-off triggered by tightening liquidity conditions. The warning highlights the growing sensitivity of crypto markets to macroeconomic and fiscal policy mechanics, particularly as institutional participation increases. If the liquidity squeeze materialises as expected, bitcoin and broader digital asset markets could face a notable correction in the near term.
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