Negative Rates, Falling Bond Yields: Time to Consider Bitcoin
With high market uncertainty, low inflation, and negative interest rates in many countries, it’s becoming harder for investors to ignore Bitcoin, which is one of the very few investments these days to offer an alternative to further losses. Bond Yields Going Negative Globally. Amid recent market turmoil following Brexit, slashing of forecasts and credit....
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The Central Banks of Japan and Europe have imposed negative interest rates on deposits. Would these blunt monetary tools of Central Bankers be effective if bitcoin adoption becomes widespread? Negative interest rates are the tools of Central Banks. Christine Lagarde, International Monetary Fund Managing Director, says: Negative interest rates are the emergency tools of Central Banks - they spur lending and investment in the economy when traditional measures have failed. Investors may tolerate marginal negative yields on sovereign debt because it is a safe investment, and they may be forced....
A recent report from Pantera Capital said moves in the debt market and the Fed’s shifting monetary policy could be the fodder that fuels Bitcoin’s next monster rally. There has been a lot of focus on the performance of the stock and cryptocurrency markets over the past year or two as the trillions of dollars that have been printed into existence since the start of the COVID pandemic have driven new all-time highs, but analysts are now increasingly sounding the alarm over warning signs coming from the debt market. Despite holding interest rates at record low levels, the cracks in the system....
Rising bond yields are a threat to prices of hedge assets, but bitcoin is soaring as gold falls.
The bond markets are rattled and global yields are rising, signaling a possible reversal of an aging 33 year bull market in bonds that could have a major impact on all other global financial markets resulting in a reprice in asset classes across the board. The price of bonds has been falling in dramatic fashion and the reason for this has varied. Some speculate the bond markets smells economic growth picking up in the second half of 2015, while others believe inflation expectations are picking up. Bond market liquidity (or the lack thereof) has been identified by many market experts as the....
Bitcoin has struggled to capitalize on its recent bull run above $61,000 as traders continue to assess the impact of rising US bond yields on the cryptocurrency market. And now, with markets anticipating further interest rate growth in the 10-year Treasury note, an overvalued BTC/USD exchange rate is clueless about where to head next. The […]