CryptoMediaClub
Sunday, October 26, 2025
  • All news
  • Bitcoin
  • Ethereum
  • Altcoins
  • NFT
  • Blockchain
  • Analysis
No Result
View All Result
  • All news
  • Bitcoin
  • Ethereum
  • Altcoins
  • NFT
  • Blockchain
  • Analysis
No Result
View All Result
CryptoMediaClub
No Result
View All Result
Home Bitcoin

Bitcoin price risk? US debt deal to trigger $1T liquidity crunch, analyst warns

19.05.2023
A A
0
130
VIEWS
ShareShare

Bitcoin (BTC) stares at potential losses heading into the third-quarter of 2023 after U.S. lawmakers will likely reach an agreement on raising the debt ceiling.

A $1 trillion liquidity hole ahead

Raising the debt ceiling means the U.S. Treasury could issue new bonds to raise cash to meet its previous obligations.

As a result, the cash pile at the Treasury General Account could increase from $95 billion in May to $550 billion by June and to $600 billion in the three months afterward, according to the department's recent estimates.

U.S. debt limit increases over the years. Source: Bloomberg

Ari Bergmann, the founder of risk management firm Penso Advisors, estimates that the Treasury will cross $1 trillion by the end of Q3, 2023.

“My bigger concern is that when the debt-limit gets resolved — and I think it will — you are going to have a very, very deep and sudden drain of liquidity,” said Bergmann, adding:

“This is not something that’s very obvious, but it’s something that’s very real. And we’ve seen before that such a drop in liquidity really does negatively affect risk markets, such as equities and credit.”

In other words, the cash available to buy riskier assets like stocks, Bitcoin and cryptocurrencies will all likely experience downward price pressure at some point after the debt ceiling is raised.

Bloomberg adds:

Estimated at well over $1 trillion by the end of the third quarter, the supply burst would quickly drain liquidity from the banking sector, raise short-term funding rates and tighten the screws on the US economy just as it’s on the cusp of recession. By Bank of America Corp.’s estimate it would have the same economic impact as a quarter-point interest-rate hike.

Will Bitcoin price remain rangebound?

Such macroeconomic hurdles could prevent Bitcoin from reclaiming its yearly highs of over $30,000 in the coming months, says independent market analyst Income Sharks.

"We most likely range between 20k to 30k and even get an altseason," the analyst noted, adding:

"New money isn't coming in; it's all just rotating […] Unless we get a new narrative or Stocks to find a way to rally, it's looking more likely that the U.S. elections in 2024 will be the next big catalyst.

BTC price chart technicals meanwhile show BTC/USD consolidating below its 50-day exponential moving average (50-day EMA; the red wave), near $27,650.

BTC/USD daily price chart. Source: TradingView

Failure to decisively breakout above this important resistance area will increase the chances of a pullback.

Traders should then watch for a possible correction toward the 200-day EMA near $25,000 — the next major support area, particularly if the Fed hikes by 25 basis points in June.

Related: Bitcoin, gold and the debt ceiling — Does something have to give?

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

Share10Tweet6ShareSharePin2

Related Posts

Coinbase’s Astounding $100 Billion Milestone Amidst Bitcoin’s Record Surge
Bitcoin

Coinbase’s Astounding $100 Billion Milestone Amidst Bitcoin’s Record Surge

15.07.2025
0

BitcoinWorldCoinbase’s Astounding $100 Billion Milestone Amidst Bitcoin’s Record Surge The cryptocurrency world is buzzing with excitement, and for good reason!...

Read moreDetails
Bitcoin’s Unseen Ascent: Why Market Euphoria Is Still Ahead, According to Alphractal CEO

Bitcoin’s Unseen Ascent: Why Market Euphoria Is Still Ahead, According to Alphractal CEO

14.07.2025
Bitcoin Holdings Soar: The Blockchain Group’s Momentous Digital Asset Accumulation

Bitcoin Holdings Soar: The Blockchain Group’s Momentous Digital Asset Accumulation

14.07.2025
Bitcoin’s Astonishing Anomaly: Why Public Search Interest Remains Low Despite Record Highs

Bitcoin’s Astonishing Anomaly: Why Public Search Interest Remains Low Despite Record Highs

14.07.2025
Bitcoin Treasury Strategy: Unleashing Growth with The Blockchain Group’s $3.52M Boost

Bitcoin Treasury Strategy: Unleashing Growth with The Blockchain Group’s $3.52M Boost

08.07.2025
Load More
Next Post
Australian Securities Exchange Drops Blockchain Adoption Plans

Australian Securities Exchange Drops Blockchain Adoption Plans

0 0 votes
Рейтинг статьи
Subscribe
Notify of
guest
guest
0 комментариев
Oldest
Newest Most Voted
Inline Feedbacks
View all comments

Recommended

Dogecoin Reigns Over Bitcoin, Ethereum, and Litecoin in Trading Volume

Dogecoin Reigns Over Bitcoin, Ethereum, and Litecoin in Trading Volume

2 years ago

Crypto hedge founder says sell pressure projections on Ethereum are too high

3 years ago
TradFi gets crypto boost: Renegade joins Cointelegraph Accelerator

TradFi gets crypto boost: Renegade joins Cointelegraph Accelerator

2 years ago

Cristiano Ronaldo Takes Lie Detector Test for Binance Stirs Mixed Community Reaction

2 years ago

Categories

  • All news
  • Altcoins
  • Analysis
  • Bitcoin
  • Blockchain
  • Ethereum
  • NFT
No Result
View All Result

Highlights

Rumble to Launch Bitcoin Tipping for 51 Million Users in Partnership With Tether

SpaceX Moves $133 Million in Bitcoin Across Wallets, Arkham Data Shows

Trump Poised to Nominate Michael Selig as Next CFTC Chair: Bloomberg

Bitcoin Price Prediction: Q4 Rally at Risk as Massive Long Liquidations Drive BTC Below Key Support

Ethereum Price Prediction: Market Cap Resistance at $3,930 – What’s the Key Catalyst?

The 5 unbelievable crypto comeback stories that changed the world forever

Trending

World Still Not Off the Hook: Thai SEC Raids Iris Scanning Hub Over WLD Token Breach
All news

World Still Not Off the Hook: Thai SEC Raids Iris Scanning Hub Over WLD Token Breach

26.10.2025
0

Thailand’s Securities and Exchange Commission (SEC) and the Cyber Crime Investigation Bureau (CCIB) have raided a Worldcoin-linked...

Bitcoin Set to Explode to $180K as Global Money Floods In: VanEck CEO

Bitcoin Set to Explode to $180K as Global Money Floods In: VanEck CEO

26.10.2025
Snorter Bot Token Burns Half of Supply in Boost For Presale Buyers, 3 Days Before Launch

Snorter Bot Token Burns Half of Supply in Boost For Presale Buyers, 3 Days Before Launch

26.10.2025
Rumble to Launch Bitcoin Tipping for 51 Million Users in Partnership With Tether

Rumble to Launch Bitcoin Tipping for 51 Million Users in Partnership With Tether

26.10.2025
SpaceX Moves $133 Million in Bitcoin Across Wallets, Arkham Data Shows

SpaceX Moves $133 Million in Bitcoin Across Wallets, Arkham Data Shows

25.10.2025
  • All news
  • Altcoins
  • Bitcoin
  • Blockchain
  • Ethereum
  • NFT
  • Analysis
Editor: cryptomediaclub.com@gmail.com
Advertising: digestmediaholding@gmail.com

Disclaimer: Information found on CryptoMediaClub is those of writers quoted. It does not represent the opinions of CryptoMediaClub on whether to sell, buy or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk.
CryptoMediaClub covers fintech, blockchain and Bitcoin bringing you the latest crypto news and analyses on the future of money.

© 2023 Crypto News. All Rights Reserved

No Result
View All Result
  • All news
  • Bitcoin
  • Ethereum
  • Altcoins
  • NFT
  • Blockchain
  • Analysis

Disclaimer: Information found on CryptoMediaClub is those of writers quoted. It does not represent the opinions of CryptoMediaClub on whether to sell, buy or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk.
CryptoMediaClub covers fintech, blockchain and Bitcoin bringing you the latest crypto news and analyses on the future of money.

© 2023 Crypto News. All Rights Reserved

wpDiscuz