TechFlow news, on May 27, HTX Research analyst Chloe (@ChloeTalk1) pointed out in this column that last week's long-term government bond auctions in the United States and Japan both saw weak demand. U.S. 20-year Treasury yields surged above 5%, while Japan's long-term interest rates hit a 25-year high, fueling market concerns about tightening global liquidity. However, the U.S. Treasury is still primarily raising funds through 3–6 month T-Bills, mainly draining money from money market funds rather than risk assets. The Federal Reserve can also pause balance sheet reduction or activate repo facilities at any time, limiting pressure on risk assets.
Bitcoin has therefore shown strong resilience: spot ETFs continue to see modest net inflows, over 70% of Bitcoin on-chain has been held for more than six months, exchange balances keep declining, and buyers from Asia and the Middle East are accumulating during dips. Even if net U.S. Treasury financing rises to $1.25 trillion between July and September, heavy short-end issuance combined with repo backstops reduces direct drain pressure on high-beta assets. Passive holdings via ETFs and widely distributed "hard coins" help disperse selling pressure, and together with expectations of dollar depreciation, Bitcoin remains strong.
Note: The content of this article is not investment advice, nor does it constitute an offer, solicitation, or recommendation regarding any investment product.
