The U.S. Treasury plans to rebuild its cash balance to about $900 billion by the end of June, a move that could reduce liquidity conditions that Bitcoin depends on. According to NS3.AI, Treasury refunding documents assume the cash balance could peak near $1 trillion, plus or minus $50 billion, by late July.
The report noted that the Federal Reserve’s reverse repo facility has dropped below $100 billion, which may limit its role as a liquidity source. With reverse repo usage lower, bank reserves are seen as a more likely funding source for the Treasury’s cash rebuild, potentially drawing down reserves as the balance rises.