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Gordon Johnson, CEO / Analyst at GLJ Research, observes that bitcoin has been behaving similarly to a derivative of the U.S. Treasury's cash management activity over the past year.
Johnson points out that bitcoin rallies when net Treasury bill issuance changes to paydowns, but falls when the Treasury resumes bill sales. He also notes that with the reverse repo balance near zero, there is currently no buffer to support the market.
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Johnson has recently focused on developments in the electric vehicle sector. He flagged that Tesla shares fell 6 percent following the Cybercab event, citing missing details and a new U.S. probe. Earlier, Johnson noted that Tesla lacked federal and state approvals for driverless Robotaxi operations.