The Unexpected Upside: Tariffs Depress Treasury Yields, Shine Light on Crypto
- US Treasury 10-year yield dropped below 4%
- Investors move to bonds, pushing yields down and boost appeal in crypto investments
- White House advisor Peter Navarro predicts Trump’s tariffs to generate over $6 trillion in revenue
While President Trump’s latest tariff announcements sparked immediate, sharp sell-offs across global markets, emerging analysis suggests the fallout might hold unexpected long-term benefits for the cryptocurrency sector.
This contrarian view centers on the tariffs’ potential impact on traditional financial conditions, particularly interest rates and liquidity.
Falling Treasury Yields Hint at Easier Money
For starters, the US Treasury 10-year yield dropped below 4%. This reflects a flight to safety amid Trump’s tariffs, as investors move to bonds, pushing yields down and potentially driving interest in assets like Bitcoin.
Falling yields may signal anticipations of looser monetary policies or rate cuts by the Federal Reserve to stimulate economic growth, which can lead to increased liquidity in financial markets.
Such conditions have in the past been favorable for assets like cryptocurrencies, although it needs to be said …
The post The Unexpected Upside: Tariffs Depress Treasury Yields, Shine Light on Crypto appeared first on Coin Edition.
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The Unexpected Upside: Tariffs Depress Treasury Yields, Shine Light on Crypto
- US Treasury 10-year yield dropped below 4%
- Investors move to bonds, pushing yields down and boost appeal in crypto investments
- White House advisor Peter Navarro predicts Trump’s tariffs to generate over $6 trillion in revenue
While President Trump’s latest tariff announcements sparked immediate, sharp sell-offs across global markets, emerging analysis suggests the fallout might hold unexpected long-term benefits for the cryptocurrency sector.
This contrarian view centers on the tariffs’ potential impact on traditional financial conditions, particularly interest rates and liquidity.
Falling Treasury Yields Hint at Easier Money
For starters, the US Treasury 10-year yield dropped below 4%. This reflects a flight to safety amid Trump’s tariffs, as investors move to bonds, pushing yields down and potentially driving interest in assets like Bitcoin.
Falling yields may signal anticipations of looser monetary policies or rate cuts by the Federal Reserve to stimulate economic growth, which can lead to increased liquidity in financial markets.
Such conditions have in the past been favorable for assets like cryptocurrencies, although it needs to be said …
The post The Unexpected Upside: Tariffs Depress Treasury Yields, Shine Light on Crypto appeared first on Coin Edition.
Read More
Two Crypto Views, One Outcome? CZ Sees Froth, Hayes Sees $1M BTC Catalyst