Treasuries will absorb dollar liquidity after raising the debt ceiling

According to Coindesk, Noelle Acheson, former head of research at Coindesk and Genesis Trading, said that after successfully raising the debt ceiling, the Treasury will look to rebuild its cash balance by issuing government bonds, which could suck liquidity out of the system and give bond yields upward momentum, as increased issuance tends to depress prices and raise yields. and raise yields.

But Bitcoin (BTC) is known to move in the opposite direction of bond yields, and while raising the debt ceiling may remove major economic uncertainty, in reality, assets such as Bitcoin that are not tied to the real economy and rely heavily on fiat currency liquidity may suffer. In addition, the issuance of more U.S. government bonds will increase public spending, which will further delay the possibility of an interest rate cut.