The US Secured Overnight Financing Rate (SOFR) surged by 18 basis points, reaching 4.22%, marking the largest daily increase in over a year and raising alarm bells about potential liquidity issues in financial markets. This surge is believed to be linked to the Treasury’s increased reliance on short-term borrowing as the risk of a government shutdown looms. With this strategy, the US Treasury issued a higher volume of short-term bonds, leading to an oversupply in repo markets and consequently, a spike in funding costs – pushing up both repo rates and SOFR. 💰 As a result, selling pressure on risky assets emerged. Bitcoin was particularly vulnerable to this, experiencing a notable drop below $106,000 before settling down 3.27% over the last 24 hours. 📉 Beyond Bitcoin, Ethereum, Solana, BNB and XRP also saw considerable declines in price, registering double-digit drops within the past week. *Please note: this is for informational purposes only and should not be taken as financial advice.*