Bitcoin price risk? US debt deal to trigger $1T liquidity crunch, analyst warns

Bitcoin (BTC) stares at possible losses heading into the third-quarter of 2023 after U.S. legislators will likely reach an agreement on raising the financial obligation ceiling.A $1 trillion liquidity hole aheadRaising the financial obligation ceiling indicates the U.S. Treasury might release brand-new bonds to raise cash to meet its previous obligations.As a result, the money pile at the Treasury General Account might increase from $95 billion in May to $550 billion by June and to $600 billion in the three months afterward, according to the departments recent estimates.U.S.”In other words, the cash offered to buy riskier possessions like stocks, Bitcoin and cryptocurrencies will all likely experience downward cost pressure at some point after the financial obligation ceiling is raised.Bloomberg includes: Estimated at well over $1 trillion by the end of the 3rd quarter, the supply burst would rapidly drain liquidity from the banking sector, raise short-term financing rates and tighten up the screws on the United States economy just as its on the cusp of economic downturn. By Bank of America Corp.s estimate it would have the very same financial effect as a quarter-point interest-rate hike.Will Bitcoin cost remain rangebound?Such macroeconomic difficulties might avoid Bitcoin from reclaiming its yearly highs of over $30,000 in the coming months, says independent market analyst Income Sharks.