Home›Crypto›Market Structure›Bank reserves dropped $88.236 billion, clouding Bitcoi…

Bank reserves dropped $88.236 billion, clouding Bitcoin liquidity signals

Fed reserve snapshots for Sept. 23 to Sept. 30 showed a $88.236 billion drop, but the weekly average rose $17.897 billion, highlighting why reserve-based liquidity readings can disagree.

Reported · Written up by our desk · Market Structure

CryptoSlate highlighted that Bitcoin’s quarter-end liquidity signal can flip depending on which Federal Reserve bank reserve measure is used. In Fed data released Oct. 1, bank reserves fell $88.236 billion between Sept. 23 and Sept. 30, while their weekly average rose $17.897 billion.

The outlet said reserves represent balances banks hold at the Federal Reserve to make and receive payments, and the level can matter for dollar financing. However, it argued that a reserve chart by itself cannot prove whether any pressure actually reached Bitcoin.

CryptoSlate also noted that the balance-sheet decline was largely accounted for by Treasury cash and reverse repos, primarily involving foreign official accounts. It added that Sept. 30’s median cost of Treasury-backed overnight borrowing was 3.90%, putting the funding price within the range of the five latest observed readings.

Overall, the analysis emphasized that using an endpoint balance, a weekly average, or a funding price as if they were interchangeable can produce opposing market signals from the same period. It said the Sept. 30 quarter-end provides a test of how reserve measures align with liquidity theses.

Latest closeBitcoin $85,575.51 ▲0.8%

More like this

Sources