[Warning: U.S. Treasury to Withdraw $150 Billion Liquidity Next Week, Bitcoin May Decline Further] BlockBeats News, May 28 — Michael Kramer, founder of Mott Capital Management, issued a warning that Bitcoin's recent sell-off could deepen due to upcoming actions by the U.S. Treasury, which are expected to withdraw approximately $150 billion in liquidity from the financial system. In his market analysis report, Kramer noted that Bitcoin often serves as a better liquidity indicator than most instruments. If Treasury settlements act as a drain on liquidity, Bitcoin could experience a significant decline. The U.S. Treasury regularly issues bonds for financing, and when new securities are sold, cash flows from investors into the Treasury's account at the Federal Reserve. This process extracts liquidity from the banking system, reducing cash available for other investments. From May 28 to June 5, Treasury operations are expected to result in a liquidity loss of approximately $150 billion. This includes $15 billion in short-term Treasury bills maturing on Thursday, $47 billion in coupon settlements on Friday, $68 billion on Monday of next week, and $16 billion in short-term Treasury bill settlements on Tuesday of next week. Additionally, there is a short-term Treasury bill settlement of approximately $5 billion to $15 billion on June 4. When liquidity is withdrawn, even temporarily, investors typically become more cautious and reduce their interest in risk assets like Bitcoin. Early signs of this pressure have already emerged, as Bitcoin has fallen about 11% from its early May high above $82,500, recently breaking below the critical $75,000 support level. Kramer pointed out that this is a clear signal that liquidity conditions are tightening. [Original Link]