Fund Manager Warns BTC Faces More Pain on $150B Liquidity…

Bitcoin is trading near $73,000, down roughly 11% from highs above $82,500 hit earlier this month, and one prominent fund manager says the worst may not be over. Michael Kramer, founder of Mott Capital Management, flagged Treasury settlements scheduled between May 28 and June 5 as a material risk, warning that a $150 billion liquidity drain could push BTC meaningfully lower. "In my experience, Bitcoin tends to be a better liquidity indicator than most other instruments. If the Treasury settlements are a drain on liquidity, then Bitcoin could be heading much lower," Kramer wrote.

The mechanism is well-understood: when the Treasury sells new securities, cash flows into the Fed's account and out of the banking system, starving risk assets of the fuel they need to climb.