By Bitcoin Magazine - 2 snin ilu - Ħin tal-Qari: 3 minuti
For Patient Accumulators, Economic Liquidity Issues Present Massive Bitcoin Opportunità
For patient accumulators of bitcoin, the current and potential future price action of bitcoin should be viewed as a massive opportunity.
Dan hawn taħt huwa minn edizzjoni reċenti tad-Deep Dive, Bitcoin Newsletter tas-swieq premium tal-Magazin. Biex tkun fost l-ewwel li tirċievi dawn l-għarfien u oħrajn on-chain bitcoin analiżi tas-suq direttament fl-inbox tiegħek, tabbona issa.
The meltdown in equity and credit markets is occurring while the yield curve (10-year U.S. Treasury yield minus two-year U.S. Treasury yield) is flattening in a dramatic way:
The yield curve is of great importance in the financial system due to the way that lending is conducted. Most creditors borrow short to lend long (i.e., take on short-dated liabilities and acquire long-dated assets), so when the yield curve inverts, it means that creditors are more incentivized to hold short-dated government paper than they are to lend out for duration. The implications of short-dated yields being higher than long-dated means it is also less risky to hold cash than it is to invest in risk assets (even with negative real yields) that sell off with weak economic activity.
This leads to liquidity issues in the economic system and it is why a yield curve inversion has predated every recession in the United States since the 1960s.
Yield curve inversion has predated every recession in the U.S. since the 1960s. Source: Trading View.The most jarring aspect of the current environment is the reality that the Fed funds rate is still near 0%, with recession indicators flashing bright red.
Recession indicators are flashing bright read. Source: Trading View. The SPX is rising as the percent yield spread declines. Source: Trading View.Kieku tkun wise biex twissi lill-qarrejja tagħna li minkejja li huma estremament bullish fuq bitcointal-prospetti fit-tul, il-prospetti makroekonomiċi attwali jidhru estremament dgħajfa. Kwalunkwe ingranaġġ eċċessiv preżenti fil-portafoll tiegħek għandu jiġi evalwat.
Bitcoin fil-ħażna kiesħa tiegħek hija perfettament sigura filwaqt li l-ingranaġġ tal-mark-to-market mhuwiex. Għal akkumulaturi lesti u pazjent ta ' bitcoin, l-azzjoni tal-prezz attwali u potenzjali futura għandha titqies bħala opportunità enormi.
If a liquidity crisis is to play out, indiscriminate selling of bitcoin se jseħħ (flimkien ma 'kull assi ieħor) f'għaġġla għal dollari. Dak li qed iseħħ matul dan iż-żmien huwa essenzjalment għafsa qasira ta 'dollari.
The response will be a deflationary cascade across financial markets and global recession if this is to unfold.
This is why we prefer to maintain a multi-year (multi-decade even) outlook on bitcoin, as it is our belief that the response to this event will be only one viable “solution”: more stimulus.
This will likely come in the form of yield curve control, where the Federal Reserve monetizes any amount of debt securities across various durations at a certain level of yield.
Quantitative easing is a fixed amount of money printing at any price. Yield curve control is in theory an unlimited amount of printing to maintain a certain price. This is where the system is headed in our view.
And this is why we own bitcoin.
Sors oriġinali: Bitcoin Magazine