US Bond Market Is Flashing a Major Warning: Is This the Setup Bitcoin Was Built For?

The US bond market is sending increasingly uncomfortable signals. How does BTC fit into this? Inflation is heating up again, as evidenced by the PPI data that came out on Thursday. Treasury yields are approaching 5%, and the US government is trying to stabilize the bond market while proposing another trillion-dollar stimulus program. The immediate implications for bitcoin are bearish. However, the longer-term picture is considerably more complicated. Bad For BTC (For Now) August producer prices rose 5.4% year-over-year, which was just slightly over expectations. At the same time, Brent crude jumped past $100 this week as the situation in the Middle East sees no actual improvement and supply disruptions continue. The probability of a rate hike after the conclusion of the FOMC meeting on September 16 is over 70%, according to futures markets and some prediction platforms. The 10-year Treasury yield climbed to just under 5%, despite the Treasury’s ongoing efforts to improve liquidity in long-dated government debt. Higher yields typically mean tighter financial conditions, a stronger incentive to hold relatively safe government debt, and, unfortunately for the bitcoin bulls, less appet...