Bitcoin price risk? US debt deal to trigger $1T liquidity crunch, analyst warns
Bitcoin price could drop to $20,000 in Q3 amid mounting worries about a potential cash liquidity crisis led by the U.S. Treasury Department. 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, v...