Bridgewater founder Ray Dalio:
In my book (How Nations Go to Ruin: The Fragile Balance), I laid out in detail a typical framework to explain what usually happens when an unsustainable imbalance emerges between the supply and demand for debt. Recently, three things happened at the same time:
The Japanese government sold a portion of its holdings of U.S. Treasuries, bringing the funds back to Japan to support the yen and Japan’s capital markets, while also reducing its exposure to U.S. Treasury debt. By doing so, it can avoid having to raise interest rates beyond the level it is willing to accept in order to support the yen.
U.S. Treasury yields hit new highs, with long-term yields leading the rise, while the dollar weakened at the same time. The reasons include both the massive bond supply today and in the future, as well as signs that market demand for these bonds is weakening.
This week, U.S. Treasury Secretary Bessent announced that the U.S. Treasury will buy U.S. Treasuries, even though the scale the Treasury can do this at is very limited.
Here are a few things each day:
1, Bitcoin strongly breaks through 7.9W, triggering the largest short squeeze in history and its best single-week performance in three years
2, BlackRock bought 11,100 BTC and 132,800 ETH in the past two days
3, Aave V4 deposits surpass $600 million, setting a new all-time high
4, Iran says it will soon deliver a historic lesson to its enemies at sea
5, Goldman Sachs: Demand for bullish gold options surges, which may amplify volatility in gold prices
6, Ray Dalio of Bridgewater warns that a U.S. debt crisis could arrive within the next three years; he recommends reducing bond holdings and increasing allocations to gold and BTC
7, Justin Sun accuses World Liberty’s USD1 stablecoin of having a "backdoor feature"
8, Big Brother Maji’s total value of long positions exceeds $140 million; BTC longs are up by $2.02 million
9, Zhao Changpeng on Trump pushing the U.S. to adopt Hyperliquid: this is a win for the entire crypto industry
