Treasury settlement flows are draining market liquidity, creating a headwind for Bitcoin and tech equities. While defensive sectors hold steady, the ongoing drain is expected to weigh on risk assets through the upcoming tax season.
Heavy Treasury settlement flows are draining liquidity from markets, creating a negative bias for equities and risk assets. Data shows stocks, especially tech and crypto, tend to fall on settlement dates as cash leaves the system, while defensive sectors and bonds hold up better. This liquidity drain may continue weighing on markets through tax season.
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