Bitcoin may face potential losses in the third quarter of 2023 as U.S. lawmakers are likely to agree on raising the debt ceiling. This will result in the U.S. Treasury issuing new bonds to meet its previous obligations, leading to an increase in the cash pile at the Treasury General Account.
The founder of risk management firm Penso Advisors estimates that the Treasury will cross $1 trillion by the end of Q3, 2023, which could negatively affect risk markets such as equities, credit, and cryptocurrencies.
As a result, Bitcoin may remain rangebound between $20,000 to $30,000, and traders should watch for a possible correction towards the 200-day EMA near $25,000.
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