🚨 Breaking News! The U.S. banking system is showing signs of liquidity stress, with the secured overnight financing rate (SOFR) hitting a six-year high of 5.4%. This rate indicates the cost for banks to borrow cash collateralized by U.S. Treasury securities overnight.

This uptick could spell trouble for risky assets like Bitcoin (BTC), which has already seen a 13% decline in the past 30 days.

David Brickell from FRNT Financial warns that this situation could cause short-term market worry, reminiscent of the repo funding rate blow-up in 2019. He suggests the Federal Reserve may need to restart liquidity injections to manage the situation.

What are your thoughts on this? Could this be another signal for the Fed to cut quantitative tightening? Let's discuss in the comments below! 💬