Bitcoin Faces Fresh Challenges After Debt Deal Moves Forward, Citigroup Warns
- Estimated $1 trillion T-bill deluge headwind for crypto: Citi
- Bitcoin underperformed on risks of US defaulting on its debt
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Just when markets appear to be moving past the months-long drama around the US debt ceiling, holders of risky assets such as cryptocurrencies are likely facing a fresh challenge while the Treasury looks to rebuild its depleted cash balance with an estimated $1 trillion Treasury-bill deluge.
“The impending reserve drawdown, due to the [Treasury General Account] rebuild, may prove to be a headwind,” Citi Research strategists including Alex Saunders wrote in a note.