It's Thursday, June 1st, 2023, and this is Markets Daily from CoinDisc.

I'm Adam B. Levine here again with your Daily News Roundup.

On today, we're talking Bitcoin, more debt ceiling drama, top headlines, and more.

And just a reminder, CoinDesk is a news source and does not provide investment advice.

Bitcoin, Ether and other top tokens are down and markets trading mixed, but mostly lower.

Traders of risk assets broadly, though, are paying close attention to ongoing movement

towards a multi-year suspension of the U.S. debt ceiling in a deal that has both Democrat and Republican

members of the Business As Usual Club declaring victory.

The agreement passed the House last night with majority support and now heads to the Senate

where it's expected to pass as well, before being signed into law by U.S. President Joe Biden.

You might think that with uncertainty around that

threat and default likely to soon be over, that risk assets would be hopeful, but that's not

exactly how things may work out. Once the suspension is signed into law, a few things are expected

to happen. First, the U.S. Treasury will have to refill its almost completely depleted Treasury

General account, also known as the TGA, which means selling some $500 billion worth

of debt into the financial system, which means that we'll be extracting that much cash.

This is likely to hit risk assets in particular, as they tend to be more sensitive to liquidity

conditions than safer plays, such as bonds and many groups of equities.

Macro-analyst Noel Adjison said, continuing, the Treasury drawing down its account at the Fed was one of the tailwinds for the market earlier this year,

as money that would normally just sit there was put into the economy in the form of government expenditures,

Acheson explained.

She continued,

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