US Treasury drains 77579 million from bank reserves, impacting Bitcoin liquidity

Bank reserves fell by 77579 million on a weekly-average basis for the week ending July 29. The US Treasury's borrowing estimate for July through September increased by 68000 million, raising concerns about Bitcoin's liquidity. The Treasury's cash balance is projected to be 950000 million by the end of September, reflecting an increase of 68000 million from the May 4 baseline. After adjusting for a higher starting balance, the revision grows to 87000 million due to lower projected net cash flows. The Federal Reserve's report shows weekly-average reserve balances at 2984570 million for the week ended July 29, down from 3062149 million the previous week. The Treasury General Account (TGA) rose from 829623 million to 910776 million during the same period. The TGA's increase of 81153 million was a significant component of the overall increase in deposits. The US Treasury will release Q3 financing details on August 5, which will clarify the borrowing strategy and its impact on reserves. The financing map will indicate how Treasury's actions affect market liquidity and risk appetite.

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