The rise in government bond yields signals that "structural" changes in the economy are approaching. According to Shang Wu, a senior analyst at the BitMEX crypto exchange, this situation will trigger a sharp rise in Bitcoin's price and the start of a new "supercycle." Investors are beginning to flee devaluing assets and move toward inflation-resistant digital assets. This is reported by Cointelegraph.com reports .
On Tuesday, the yield on 30-year U.S. Treasury bonds exceeded 5.14%, while Japan's 10-year government bonds reached 2.8%. Wu noted that such high levels cannot be sustained in the long term, leaving governments with the choice of devaluing their currency or facing a sovereign debt crisis.
Currently, the U.S. national debt has exceeded 39 trillion USD. Due to geopolitical tensions and conflicts involving Iran, rising energy prices are further fueling inflation. Typically, central banks raise interest rates to curb inflation, but due to the massive debt burden, high rates make the government's debt servicing costs unbearable.
Analysts, including macroeconomist Lyn Alden, predict that governments and central banks will attempt to covertly continue "quantitative easing" (QE) policies. This involves methods such as bond buybacks and yield curve control to increase liquidity, which ultimately boosts demand for assets with limited supply, such as Bitcoin.
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