The U.S. Treasury's need to replenish its general account by roughly $900 billion could absorb significant market liquidity, creating a quiet but serious headwind for Bitcoin. As the Treasury issues new debt to rebuild cash reserves, dollars are effectively pulled from the financial system into government coffers, tightening the liquidity conditions that risk assets like Bitcoin depend on. This comes as Bitcoin traders are already contending with fading rate-cut expectations, with firm labor market data pushing the probability of a Federal Reserve rate hike by year-end to around 85% and lifting the 10-year Treasury yield toward 4.5%. Together, rising yields and a shrinking liquidity pool could suppress Bitcoin's upside, as tighter financial conditions historically weigh on speculative and risk-sensitive assets across the board.
— Sponsored —
Trade smarter on BYDFI
Get a bonus on your first deposit — from $50 at $100, up to $2,000 at $20k. 200x leverage, 600+ perpetuals, deep liquidity.