While the trade war of President Donald Trump threatens to upset the world economy, an interesting divergence has emerged which could potentially grease bitcoin
Bull Run.
The divergence in consideration is that the high yields on the US Treasury note which threaten to worsen tax problems, and the renewal of the negative return of yields on Swiss State obligations.
According to Data Source PK Press Club, Swiss government obligations with deadlines up to five years have offered negative yields at the time of the press, with the two -year yield at -17.8 basic points. On the contrary, similar cash tickets offered for more than 4%.
The divergence is the way of the bond market to tell us that the trade war will have different impacts in various countries, depending on their commercial profiles.
Those who direct trade surpluses, such as several European countries and China, will be confronted with disinflation or outright deflation, while countries like the United States, which matter more than they export it, will see an increase in prices.
The spectrum of deflation in European nations and China could put pressure on their central banks to aggressively facilitate monetary policy, which leads to an increase in the deployment of capital in alternative investments such as Bitcoin. The Swiss National Bank and the European Central Bank have already reduced rates in recent months.
Meanwhile, analysts have said that higher yields in the United States and record public debt could speed up the lag of American assets and alternative assets.
“The last time it happened [Swiss yields turned negative in late 2019]It preceded the coordinated world softening, the repo market crises and, ultimately, the QE of the pandemic era. Now, he probably reflects a mixture of deflationary pressure, risk of contagion of the euro zone and capital rotation in refuges of monetary sovereignty in the midst of sovereign stress elsewhere, “said the end macro of the pseudonym analyst on X.
It should be noted that the Bitcoin bull in 2020-2021 from $ 5,000 to more than $ 60,000 was characterized by a record amount of public debt offering the world.
