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Bitcoin faces funding pressure as US bank reserves fall and Treasury borrowing rises

Bank reserves dropped $77.6 billion in the week ended July 29, while the Treasury’s July through September borrowing estimate was revised higher by $68 billion to shape the cash and funding backdrop for crypto.

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CryptoSlate reports that bank reserves fell by $77.579 billion on a weekly-average basis in the week ending July 29. Over the same period, the US Treasury’s borrowing estimate for July through September rose by $68 billion, increasing scrutiny of how Treasury cash flows could filter into liquidity conditions that affect Bitcoin-sensitive risk appetite.

The Treasury’s Aug. 3 release set the end-September cash balance at $950 billion, with the headline increase of $68 billion versus a May 4 baseline. After stripping out a $19 billion higher starting balance, the revision grows to $87 billion, driven mainly by lower projected net cash flows, with the measure excluding certain SOMA auction add-on rollovers while including financing for SOMA redemptions.

CryptoSlate adds that Federal Reserve data show weekly-average reserve balances at $2.984570 trillion for the week ended July 29, down from $3.062149 trillion a week earlier. In parallel, the Treasury General Account at the Fed rose from $829.623 billion to $910.776 billion, and the weekly-average increase in deposits other than reserve balances was led by the TGA, which climbed by $81.153 billion.

The story says Bitcoin enters the picture downstream through changes in cash and funding markets, with Treasury scheduled to detail Q3 financing on Aug. 5. It also notes prior remarks from SOMA Manager Roberto Perli that reserves were ample but that heavy net bill issuance in July and August 2026 could tighten money markets, depending on how the bill-coupon mix is funded.

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