U.S. Treasury to Drain $150B Liquidity Over Next Week; Analyst Warns of Bitcoin Pressure

According to Michael Kramer of Mott Capital Management, the U.S. Treasury will drain approximately $150 billion in liquidity from financial markets over the week starting May 28, potentially deepening Bitcoin's recent selloff. Kramer noted that Bitcoin typically serves as a better liquidity indicator than most other assets, and could see significant downside if Treasury operations reduce available cash for risk assets.

The Treasury's operations from May 28 to June 5 include $15 billion in short-term Treasury bills maturing Thursday, $47 billion in coupon settlements Friday, $68 billion due Monday, $16 billion in short-term bill settlements Tuesday, and approximately $5–15 billion in short-term bill settlements on June 4. Bitcoin has already declined roughly 11% from its early-month peak above $82,500, recently breaking below the key $75,000 support level.