$BTC trading over $77,000 with a weekly high of $79,500, straight away from $65,000!
So, here is my answer: NO!
This is not the bull run. Let me explain it through fundamentals, because that was the main reason behind this move.
So the US Treasury announced that they are increasing their long term securities buybacks from $2B to at least $4B per operation starting from September 9, and there is also a possibility that the size could be increased further.
What is that?
Is it Quantitative Easing? Is it increasing the size of their balance sheet? No, this is not exactly I don’t know why the Treasury made this announcement when they know they are already under huge fiscal pressure because of the war, debt and expenses of the country.
Would they use more cash to buy them back?
Would they issue new bonds to buy back their long term bonds?
Paying a credit card bill with another credit card?
If we get into this debate, I can’t write down every point here, otherwise this post would become a book 😂
So rather than that, let me give you my conclusion.
Yes, they announced it, but they haven’t started these increased buyback operations yet. They are scheduled to begin from September 9.
And now comes Japan.
Japan is currently facing serious pressure in its bond market, with Japanese yields rising and expectations of further BOJ hikes increasing.
Why does Japan matter so much? Because Japan is one of the major foreign holders of US Treasuries and Japanese investors have huge exposure to global assets.If the Bank of Japan continues hiking rates, the yen could become more attractive and some capital could flow back toward Japan from US bonds, stocks, crypto and other risky assets.
That could create additional pressure on global liquidity and risky assets.
And if that creates more inflationary pressure in the US, the Fed could also remain tighter for longer.That’s what I think the US is trying to avoid before things get worse.
They are trying to keep a grip on the bond market and prevent long term yields from getting completely out of control.
But does this really make
So, here is my answer: NO!
This is not the bull run. Let me explain it through fundamentals, because that was the main reason behind this move.
So the US Treasury announced that they are increasing their long term securities buybacks from $2B to at least $4B per operation starting from September 9, and there is also a possibility that the size could be increased further.
What is that?
Is it Quantitative Easing? Is it increasing the size of their balance sheet? No, this is not exactly I don’t know why the Treasury made this announcement when they know they are already under huge fiscal pressure because of the war, debt and expenses of the country.
Would they use more cash to buy them back?
Would they issue new bonds to buy back their long term bonds?
Paying a credit card bill with another credit card?
If we get into this debate, I can’t write down every point here, otherwise this post would become a book 😂
So rather than that, let me give you my conclusion.
Yes, they announced it, but they haven’t started these increased buyback operations yet. They are scheduled to begin from September 9.
And now comes Japan.
Japan is currently facing serious pressure in its bond market, with Japanese yields rising and expectations of further BOJ hikes increasing.
Why does Japan matter so much? Because Japan is one of the major foreign holders of US Treasuries and Japanese investors have huge exposure to global assets.If the Bank of Japan continues hiking rates, the yen could become more attractive and some capital could flow back toward Japan from US bonds, stocks, crypto and other risky assets.
That could create additional pressure on global liquidity and risky assets.
And if that creates more inflationary pressure in the US, the Fed could also remain tighter for longer.That’s what I think the US is trying to avoid before things get worse.
They are trying to keep a grip on the bond market and prevent long term yields from getting completely out of control.
But does this really make
