Important move in the U.S. that could hit BTC and gold
The Treasury announced that it will increase its purchases of long-term bonds.
The first reaction was:
📉 Yields ↓
💵 Dollar ↓
And this is interesting for gold and Bitcoin.
Gold 🥇
Lower yields reduce the opportunity cost of holding gold, and if the dollar keeps losing strength, it could give the price more fuel.
Bitcoin ₿
If yields continue to fall and financial conditions ease, the environment could become more favorable for BTC and other risk assets.
Right now I would be looking mainly at:
10Y ↓ + DXY ↓ = favorable context for BTC and gold.
But note: this doesn’t automatically mean the Fed is doing QE. The Treasury is acting on the bond market, and it’s important to separate the two.
👀 The reaction of the 10Y and DXY will tell us much more than the headline.#NFA #DYOR
The Treasury announced that it will increase its purchases of long-term bonds.
The first reaction was:
📉 Yields ↓
💵 Dollar ↓
And this is interesting for gold and Bitcoin.
Gold 🥇
Lower yields reduce the opportunity cost of holding gold, and if the dollar keeps losing strength, it could give the price more fuel.
Bitcoin ₿
If yields continue to fall and financial conditions ease, the environment could become more favorable for BTC and other risk assets.
Right now I would be looking mainly at:
10Y ↓ + DXY ↓ = favorable context for BTC and gold.
But note: this doesn’t automatically mean the Fed is doing QE. The Treasury is acting on the bond market, and it’s important to separate the two.
👀 The reaction of the 10Y and DXY will tell us much more than the headline.#NFA #DYOR