Bitcoin & Stocks Drop as $400B Liquidity Drain Looms—Not Jackson Hole
Analysts say the latest market sell-off isn’t about Jackson Hole but a $400B liquidity drain from the U.S. Treasury General Account (TGA).
The Treasury is rebuilding its cash balance, which could suck hundreds of billions from markets via new debt issuance in the coming weeks. This liquidity squeeze is pressuring Bitcoin, down over 8% to $113K, and equities, with the Nasdaq sliding 1.4%.
Unlike previous cycles, banks have fewer reserves and foreign demand for Treasuries is weaker—making this drain hit harder. In 24 hours, crypto traders saw $270M in liquidations, led by $ETH and$BTC
Big picture: The downturn looks cyclical, not structural. Bitcoin’s on-chain health and institutional adoption remain strong, but expect volatility until the TGA rebuild stabilizes.$BTC