😐 Black Swan for Crypto: The Fed is Losing Control Over Rates - Is This the Final Dump, Will They Print Liquidity and Markets Fly Up, or Will This Be the Start of a Bear Market After the Rise, or Is It Just FUD?

⚫ On September 17, the Fed is 90% likely to cut rates by 25 basis points, the market is expecting a 50 b.p. cut in 2025. However, the yield on 30-year Treasury bonds is approaching 5% — levels not seen since the 2008 financial crisis. Interest rates are rising ahead of their reduction by the central bank.

⚫ The U.S. has issued $200 billion in bonds in just 5 weeks due to financing deficits. Investors no longer want to buy U.S. government debt at current yields, and the Fed is losing control over interest rates.

⚫ Core inflation in the U.S. has exceeded 3% and continues to rise. At this inflation rate, the dollar will lose 25% of its purchasing power over 10 years, having already lost 25% since 2020.

🧷 The Bank of England has cut rates 5 times in 12 months, but the yield on 30-year UK bonds has surpassed 5.7% — the highest since 1998. In Japan, the yield on 30-year government bonds is above 3.2%, which is 30 times higher than levels in 2019. Gold is rising in correlation with rising yields, foreshadowing a global financing deficit crisis.

📩 Let’s recall the quote from John Maynard Keynes: "Markets can remain irrational longer than you can remain solvent."

✨ Meanwhile, the Hong Kong company Yunfeng Financial, associated with Alibaba founder Jack Ma, has acquired 10,000 ETH.

ℹ️ The company plans to use Ethereum as a reserve asset for the tokenization of real-world assets (RWA), technological innovations, and integration with Web3 infrastructure, as well as considering applications in insurance operations and DeFi.

🟣 Trading Club 🟣 Support