Market attention is focused on the U.S. debt ceiling debate, but a looming liquidity crisis could impact both financial and crypto markets, including Bitcoin. As the Treasury plans to replenish its dwindling General Account balance, the method and implications of raising $440 billion through T-bill issuance could cause significant market shifts. What key correlations exist between the Treasury General Account, quantitative tightening, and Bitcoin's price? Find out by delving into our comprehensive analysis...
Crypto markets brace for impact as US debt ceiling debate threatens liquidity crunch Crypto markets brace for impact as US debt ceiling debate threatens liquidity crunch
Raising the debt ceiling could result in the issuance of more T-bills, draining additional liquidity from the market and causing a crisis that could significantly impact Bitcoin.
3 min read
Updated: May. 31, 2023 at 5:14 pm UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
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Bitcoin, a decentralized currency that defies the sway of central banks or administrators, transacts electronically, circumventing intermediaries via a peer-to-peer network.
