The drop in Bitcoin’s price reflects broader market trends, with stock indices such as Nasdaq also declining. Concerns over liquidity from the Treasury’s account are perceived to have greater implications than inflation worries or Jackson Hole expectations.
David Duong from Coinbase suggests that the anticipated liquidity drain of approximately 400 billion USD from the Treasury is a primary factor behind the current market downturn, warning of potential disruptions to liquidity conditions in the near future.
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