This week, the US will auction 3-year, 10-year, and 30-year Treasury bonds. Against the backdrop of currently high interest rates, issuing bonds will withdraw some liquidity from the market.

If the auction performs well, with strong demand and stable interest rates, the market impact will be minimal; however, if demand is weak and interest rates surge, it could trigger concerns about the risk of US debt, leading to a decline in US bond prices, pressure on US stocks, and potential corrections in crypto assets, with increased volatility in the dollar.

Recently, the auction of 10-year US Treasuries has performed well, especially with active buying from domestic investors, while overseas demand has been relatively weak. This indicates that domestic funds are being increasingly absorbed by the bond market, potentially compressing liquidity in other markets.

If the upcoming auction of 30-year Treasury bonds continues this trend, it will further tighten market funds, posing short-term pressure on the upside potential of the crypto market.