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.

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.

According to a Twitter leak from Bitcoin Magazine, the Santa Monica Firefighters' Union will become the first guild to purchase and hold Bitcoin.

The aftermath of FTX's collapse has had a significant impact on the crypto industry, causing a ripple effect that drained liquidity from other businesses and prolonged the crypto winter. The bankruptcy has also led to increased regulatory scrutiny, with authorities cracking down on firms and causing some to close their US operations. Binance has considered buying a bank to become more crypto-friendly, but CEO Chanpeng Zhao believes that making minority investments in financial institutions is a more feasible solution. In other news, Tether plans to launch Bitcoin mining operations in Uruguay, Nvidia introduces a new AI supercomputer platform, and NFT marketplace Tabi raises $10 million in angel funding.

US House Republicans have introduced a draft bill to reclassify digital tokens from securities to commodities, in an effort to address regulatory challenges surrounding digital assets. The proposed legislation aims to establish clearer guidelines for the treatment of digital assets within the country, focusing on whether they should be classified as a commodity or a security. The draft bill seeks to provide a clear definition of decentralization, offering greater certainty to crypto projects operating in the US. Meanwhile, a potential presidential candidate is set to participate in a Twitter chat, with discussions potentially including Bitcoin, which is relevant to the regulation of cryptocurrencies in the US.

Bitcoin's price volatility is currently lower than that of tech giants Amazon and Meta, with an annualized volatility of around 32%, compared to its all-time average of 71%, according to The Block Research. This is due to the "summer lull" period, which is traditionally marked by lower trading volume. However, analysts predict that bitcoin's volatility will return this fall, coinciding with expectations of a bitcoin price surge in the late third and early fourth quarter of this year. Despite its current stability, bitcoin's volatility still exceeds that of rock-solid assets like gold and Apple stock.

New research by trading firm QCP Capital suggests that Bitcoin's consolidation phase could end by July, leading to a potential price breakout. QCP Capital predicts a change in course due to the United States debt ceiling "sideshow" vanishing, leaving Bitcoin to mimic its consolidation and breakout phase from 2020. The firm recommends positioning for an upcoming big move through long 3m and 6m strangles with a bias to the long call side. Other signals within Bitcoin also point to a new paradigm taking over shortly, including on-chain metrics tracking hodler behavior.

Elon Musk has extended an invitation to Robert F. Kennedy Jr., a presidential candidate for 2024, for a Twitter Spaces interview. Kennedy's support for Bitcoin and criticism of government-backed central bank digital currencies have raised eyebrows in the crypto space. Musk's recent requests for interviews with political figures are seen as an attempt to demonstrate impartiality by engaging with candidates from both major parties. The community is eagerly awaiting Kennedy's response, which could provide further insight into his stance on digital currencies and their impact on the financial landscape. Musk's tweets have been a source of controversy in the US.

Bitcoin experienced a decrease in price while major US stock indices saw an increase following a positive jobs report for May 2023 from the US Bureau of Labor Statistics.

The cryptocurrency market has experienced a net inflow of $12.5 billion in the past 24 hours, bringing the total market value to $1.14 trillion, a 1.1% increase from $1.13 trillion. Bitcoin and Ethereum's market caps grew by 0.8% and 1.8%, respectively, during this period. The top 10 cryptocurrencies all saw gains, with Cardano leading the way at 3.2% and Dogecoin at 0.6%. The market caps of Tether and USD Coin increased to $83.27 billion and $28.96 billion, respectively, while Binance USD fell to $5.17 billion.