The U.S. is set to reach its debt ceiling of approximately $36 trillion, prompting the Treasury to initiate extraordinary measures, which might include depleting the Treasury General Account (TGA). Previously, TGA drawdowns have supported risk assets, including Bitcoin (BTC). Treasury Secretary Janet Yellen emphasized that reaching the debt limit poses risks, yet it does not equate to immediate default or government shutdown. The Treasury's actions could create liquidity in the banking system by transferring funds from TGA, thereby boosting bank reserves, lending capacity, and potentially enhancing investments across financial markets. Historically, reductions in the TGA have corresponded with Bitcoin bull runs, indicating a likely inverse relationship between TGA balances and Bitcoin prices. As of now, the TGA balance stands at $677 billion, marking a pivotal moment for both Bitcoin and risk assets in the market.

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