TGA has to reach 1 trillion, and the RRP is running out fast—so next they can only forcefully tap bank reserves. The good days for risk assets may be coming to an end for now; just hold out and survive.

The U.S. Department of the Treasury plans to increase the balance of the General Account (TGA) to approximately $900 billion by the end of June and to about $1 trillion by the end of July. Analysts believe that replenishing the TGA will withdraw liquidity from the financial system, while the current balance of the U.S. reverse repurchase agreement (RRP) facility has fallen from a peak of over $2.5 trillion in 2022 to less than $100 billion. Future debt issuance may further consume bank reserves, putting pressure on risk assets like Bitcoin. (CryptoSlate)