Citigroup Research has warned that holders of risky assets such as cryptocurrencies are likely to face fresh challenges as the US Treasury looks to rebuild its depleted cash balance with an estimated $1tn Treasury-bill deluge. Citi analyzed the performance of risky assets during drawdowns and found that they were vulnerable to higher volatility and weaker returns, meaning the near-term outlook doesn’t seem too rosy for Bitcoin and Ether. The impending reserve drawdown may prove to be a headwind, according to Citi strategists including Alex Saunders.
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