BTC will drop even lower! Experts warn: A wave of US debt issuance is coming, and the market could face a $150 billion "liquidity drain."

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Bitcoin's recent decline shows no signs of stopping, and now the market faces another bearish warning. Michael Kramer, founder and CEO of advisory firm Mott Capital Management, warns that a series of large-scale debt issuances and settlement operations by the U.S. Treasury could drain approximately $150 billion in liquidity from the financial system, putting further pressure on risk assets such as Bitcoin. In his latest market analysis report, Michael Kramer noted: "In my experience, compared to most financial instruments, Bitcoin tends to be a more precise 'liquidity indicator.' If U.S. Treasury settlement continues to drain market funds, then Bitcoin's price will absolutely be driven lower." Why Does U.S. Treasury "Debt Issuance" Impact Bitcoin? To cover massive government spending, the U.S. Treasury regularly issues government bonds and Treasury bills of various maturities. When the Treasury sells these new bonds to the market, it collects cash from investors and transfers the funds to the Treasury's account at the Fed, known as the "Treasury General Account (TGA)." With all other conditions being equal, this process is akin to siphoning funds out of the banking system, significantly compressing the idle capital available in the market for investing in other risk assets. Particularly during peak issuance periods, this regular settlement often triggers brief but highly destructive liquidity shortages. After his calculations, Michael Kramer pointed out that during the short span from May 28 to June 5, a series of U.S. Treasury operations is estimated to drain approximately $150 billion in market liquidity. The specific schedule is as follows: - May 28: $15 billion in T-bills (short-term U.S. government bonds) settlement. - May 29: $47 billion in Coupon settlements. - June 1: Up to $68 billion in settlement transactions. - June 2: $16 billion in T-bills settlement. - June 4: Between $5 billion and $15 billion in T-bills pending settlement. Breaking Key Support — The "Behemoth" the Crypto World Cannot Ignore Whether in traditional stock markets or cryptocurrencies, as long as the market has "sufficiently deep liquidity and ample capital," asset prices can generally rise. However, once funds are drained from the market—even if only temporarily—investors' nerves tighten, turning conservative and defensive, and their appetite for high-risk assets like Bitcoin naturally cools significantly. This massive selling pressure is already beginning to show. Since touching a high above $82,500 earlier this month, Bitcoin has cumulatively plunged approximately 11%, currently hovering near $73,000. Michael Kramer specifically pointed out that Bitcoin's recent break below the critical $75,000 support level is a clear warning sign, indicating that broader financial liquidity is gradually tightening. Of course, this doesn't mean Bitcoin will inevitably crash without a bottom, but it sharply highlights a blind spot frequently overlooked by crypto investors: cryptocurrency is by no means a safe haven independent of the outside world. Macroeconomic forces such as government borrowing and market capital flows often exert a decisive influence on cryptocurrency prices invisibly. For ordinary retail investors, the core takeaway of this lesson couldn't be simpler: sometimes, the true hidden hand driving Bitcoin's wild swings isn't necessarily bullish or bearish news from within the crypto world, but rather those macroeconomic forces surging beneath the surface.

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