As President Donald Trump’s trade war threatens to fly the global economy, an interesting divergence has emerged that could grease the Bitcoin
Bull Run.
The divergence in consideration is high yields on the United States Treasury notes that threaten to aggravate tax problems, and the negative flip renewed in the yields of the Swiss government bonds.
According to Data Source PakGazette, the Swiss government bonds with maturities of up to five years offered negative yields at the time of publication, with the performance of two years in -17.8 basic points. On the contrary, the similar duration notes offered yields of more than 4%.
Divergence is the way the bond market tells us that the commercial war will have different impacts in several countries, depending on its commercial profiles.
Those who handle commercial surpluses, such as several European countries and China, will face disinflar or direct deflation, while countries such as the USA. UU., Which matter more than they export, will see an increase in price pressures.
The spectrum of deflation in European nations and China could press its central banks to facilitate aggressively monetary policy, which probably leads to a greater deployment of capital in alternative investments such as Bitcoin. Both the Swiss National Bank and the European Central Bank have already reduced rates in recent months.
Meanwhile, analysts have said that the highest yields in the United States and record public debt could accelerate the change of US assets and alternative assets.
“The last time this happened [Swiss yields turned negative in late 2019]preceded the coordinated global seizures, the seizures of the rest market and, ultimately, that of the pandemic era. Now, it is likely that it reflects a combination of deflationary pressure, risks of contagion of the Eurozone and the capital that revolves in the monetary sovereignty safe amid sovereign stress in other places, “said the pseudonym analyst of macro game in X.
It is worth noting that Bitcoin’s 2020-2021 bull extended from $ 5,000 to more than $ 60,000 was characterized by a record amount of government debt of negative performance worldwide.
