Japan’s 30-year bond yield just hit 3.15%, the highest ever. Their debt is now 260% of GDP. Even their Prime Minister said the situation is “worse than Greece.”
Imagine If something like this happens in the US? crypto will feel it.
When bond yields go up, safe returns look better, This could also be the reason why GOLD is so strong and going up.
If you read recent news Moody's also downgraded the US government's credit rating from AAA to Aa1, citing the growing debt and little progress toward resolving it. If US debt gets out of control, people may lose trust in the dollar and this is where Bitcoin can take the lead. Bitcoin hasn’t seen any crises yet so it yet to prove itself like Gold did in every recession or economic crisis.
If the stock market crashes, crypto usually follows.
And To deal with this condition fed But will start printing money again or cut interest rates. “Maybe this is why FED chairperson said we are ready to provide liquidity if needed”
If this happened crypto could pump. And if the dollar weakens, Bitcoin could shine.
