U.S. Treasury Operations May Tighten Liquidity, Affecting Bitcoin, Kramer Says

Michael Kramer, founder and CEO of Mott Capital Management, has indicated that upcoming U.S. Treasury settlement operations are expected to withdraw approximately $150 billion in liquidity from the financial system. According to ChainCatcher, this could exacerbate the current downward trend of Bitcoin. Kramer noted that Bitcoin often serves as a leading indicator of liquidity. Recently, Bitcoin has fallen below a critical support level of around $75,000, marking an approximate 11% decline from its monthly high of $82,500. He anticipates that the liquidity tightening will primarily stem from the settlement of U.S. Treasury bonds and short-term Treasury bills.