kobeissiletter

The yield on 30-year U.S. Treasury bonds has skyrocketed to a pre-crisis 5.19% amid oil surging above $100 due to the Iran conflict, forcing markets to price in the risk of a new Fed rate hike instead of the expected four cuts. Meanwhile, the mortgage sector is gasping at 6.68%, with a potential breach of 7%, and the insane U.S. national debt of $39 trillion has finally tightened the debt spiral, requiring colossal servicing costs.

In the short term, this has already triggered a sharp sell-off in BTC below $77,000 due to the washout of margin longs worth $670 million, and in the medium term, high-interest rates will continue to systematically choke risk appetite, compelling investors to opt for risk-free fixed income over overheated stocks and crypto.

#Macroeconomics #KobeissiLetter #FedRate #BitcoinCrash