The Federal Reserve's liquidity support for risk assets, including Bitcoin, is ending as the government plans to issue new debt to replenish the Treasury General Account.
The recent $5 trillion debt ceiling increase will lead to a significant withdrawal of liquidity from the system, potentially impacting Bitcoin and other risk assets.
The strengthening US dollar resulting from the debt issuance could create a bearish environment for Bitcoin, as historically Bitcoin performs poorly in such conditions.
Tomas warns of potential funding stress by the end of September as Treasury issues new short-term debt to refill the Treasury General Account, impacting Bitcoin's performance.