Citigroup Research strategists have cautioned that Bitcoin and Ether may face increased volatility and weaker returns due to the US Treasury's need to rebuild its cash balance through a massive Treasury bill deluge. The rebuilding of the Treasury General Account could potentially drain liquidity from the banking sector, leading to a challenging environment for digital asset investors. While the recent Senate legislation to suspend the US debt ceiling has eased concerns of an imminent US default, Citigroup strategists have questioned the uncertain impact of a potential default on decentralized digital assets like Bitcoin. Bitcoin's current state has been characterized by range-bound trading, and technical analysis suggests that a break below $25,000 could trigger a deeper sell-off.
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