• US Treasury General Account dwindles to just $49 billion.
• Market anticipates a 25-basis point rate hike in June.
• Bitcoin and altcoins remain resilient amid options expiry pressure and second largest Bitcoin withdraw from exchanges this year.
US Treasury General Account Balance Plunges
The U.S. Treasury General Account (TGA) has rapidly diminished, with only $49 billion remaining as of May 24th. This is the lowest number since 2017 when the balance dropped to around $23 billion. The TGA is the primary operating account for the United States government and services daily expenses.
Treasury Yields Rise
Treasury yields have been on an upward trend for nine out of the past ten trading sessions, according to MacroScope. House Speaker Kevin McCarthy believes an agreement on the debt ceiling will be reached soon, with negotiations continuing “24/7” to solve this problem, per MacroScope. Once such an agreement is reached, the TGA will draw liquidity from the system and issue new bonds to refill its account.
Severe Liquidity Crisis Ahead?
Blake Davis, a macro analyst from Blockware Solutions, argues that any replenishing of TGA funds could cause a severe liquidity crisis on top of the Federal Reserve’s continuing quantitative tightening program.
Bitcoin and Altcoins Stand Tall
Despite all this economic uncertainty, Bitcoin and other altcoins have remained resilient amidst options expiry pressure and second largest Bitcoin withdraw from exchanges this year; long-term holders’ bias ratio hints at Bitcoin’s potential return to bull market conditions in spite of all these obstacles.
Conclusion
The US Treasury General Account’s rapid depletion is indicative of macroeconomic stressors; it remains to be seen if lawmakers will agree on a debt ceiling solution which could help alleviate some of these concerns.. In any case, despite these turbulent times in global markets, cryptocurrencies like Bitcoin appear well positioned for continued growth over time as evidenced by their resilience during recent downturns in traditional markets
