Bitcoin, Crypto Under Selloff Pressure As US Treasury Dept Start Issuing T-Bills

    The U.S. Treasury Department didn’t wait long enough after the debt ceiling deal and decided to start offering Treasury bills immediately. The US Treasury to auction $173 billion in short-term Treasury bills on June 5 to start rebuilding its depleted cash balance, with $1 trillion in T-bills expected by the end of the third quarter. As a result, Bitcoin and the broader crypto market remain under selling pressure.

    Bitcoin, Crypto Falling As US Treasury Start $173B T-Bills Auction

    According to the U.S. Treasury Department auction schedule, it will auction $173 billion in Treasury bills on June 5. Three treasury bills of 13-week, 26-week, and 44-day worth $65 billion, $58 billion, and $50 billion, respectively to be auctioned today.

    Cash reserves in the US Treasury General Account fell to $22.89 billion on June 1 from $635.99 billion in March. Risky assets such as crypto are vulnerable to higher volatility and weaker returns as higher Treasury yields and a strong US dollar will put pressure on Bitcoin and other cryptocurrencies.

    The US Treasury is expected to issue $1 trillion in T-bills by the end of the third quarter. It will drain US dollar liquidity from the financial market, increasing the risks of a recession.

    The US Treasury yields are already rising, with the U.S. Dollar Index (DXY) breaking above 104 to a high of 104.35 today. Meanwhile, the US stock market futures hint at a flat opening on Monday amid oil and natural gas prices jumping over 2%.

    Also Read: Multichain Resumes Cross-Chain Bridges, MULTI Price Soars 40%

    BTC Price to Fall Below $26,000

    BTC price fell 2% in the past 24 hours, with price currently trading at $26,761. The 24-hour low and high for Bitcoin are $26,712 and $27,407, respectively. Also, ETH price slips to the previous support level after rising above $1900 last week. The price trades at $1870, down 2% in the past 24 hours.

    The market dynamics now depend on the US Federal Reserve monetary policy decision on June 14. The CME FedWatch Tool shows a 76% probability of the Fed keeping its policy rate unchanged. Fed Chair Jerome Powell and other Fed officials also hinted at a “skip” in June.

    Also Read: Here’s Why Terra Luna Classic (LUNC) Price Skyrocketed 35%, More Rally Ahead

    Mooky Presale


    Varinder has 10 years of experience in the Fintech sector, with over 5 years dedicated to blockchain, crypto, and Web3 developments. Being a technology enthusiast and analytical thinker, he has shared his knowledge of disruptive technologies in over 5000+ news, articles, and papers. With CoinGape Media, Varinder believes in the huge potential of these innovative future technologies. He is currently covering all the latest updates and developments in the crypto industry.

    The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.

    Source link

    Latest stories

    - Advertisement -

    You might also like...