A needed $900B Treasury cash rebuild could quietly drain the liquidity Bitcoin needs
Bitcoin faces a possible liquidity squeeze from the US Treasury’s plan to rebuild the Treasury General Account toward about $900 billion by late June and near $1 trillion by late July. That refill pulls cash out of private markets through bill issuance, reducing funds available for risk assets. The softest source of funding, the Fed’s overnight reverse repo facility, is now mostly depleted, so bank reserves are more likely to absorb the drain. Short-term bills yielding around 4% also make cash safer and more attractive, competing with speculative crypto demand. This comes as BTC is already under pressure: prices fell below $70,000 and then near $63,650, spot ETFs saw record outflows, and markets have repriced Fed policy more hawkishly. The refill could tighten conditions further, though strong bill demand, ample reserves, or weaker economic data could lessen the impact.
