Fund Manager Warns: $150 Billion U.S. Treasury Bond Operations Could Deal a Heavy Blow to Bitcoin Prices

Recently, Michae Kramer, founder and CEO of Mott Capital, stated that upcoming U.S. Treasury bond issuance operations could withdraw approximately $150 billion in liquidity from the financial system, potentially intensifying Bitcoin sell-offs.

In his view, Bitcoin often reflects liquidity more than most other financial instruments. If Treasury settlement leads to a decrease in liquidity, Bitcoin's price could fall even further. Currently, Bitcoin has dropped below a key support level near $75,000.

Specifically, the U.S. Treasury issues bonds and Treasury bills regularly to finance government spending. When the Treasury sells new securities, it receives cash from investors, which is then transferred into its account at the Federal Reserve.

However, this process withdraws liquidity from the banking system, reducing the cash available for other investments, especially during peak issuance periods. These regular settlements can cause temporary but significant liquidity gaps.

Kramer stated that between May 28 and June 5, the Treasury's operations are expected to result in approximately $150 billion in liquidity withdrawal.

This includes the $15 billion Treasury bill settlement on Thursday, the $47 billion interest settlement agreement reached on Friday, and the $68 billion related settlement on Monday;

Additionally, this liquidity drain also involves a $16 billion Treasury debt settlement agreement reached on Tuesday, and another debt settlement agreement estimated between $5 billion and $15 billion on June 4.

Analysis suggests that markets typically perform best when liquidity is abundant, but when funds are withdrawn from the system—even temporarily—investors tend to become more cautious, reducing demand for risk assets like Bitcoin.

Current market pressures are already evident: Bitcoin has fallen about 11% from its early June high of $82,500 to $73,000, losing the critical support level of $75,000, clearly reflecting tightening liquidity conditions.

In summary, while this does not guarantee that Bitcoin prices will continue to decline, the phenomenon reveals that Bitcoin's market performance is significantly influenced by government borrowing activities and macro factors such as capital flow changes.

#比特币 # Macroeconomics