Bitcoin Feels The Heat Short Term 🖤
August producer prices climbed 5.4 percent year over year which beat expectations just a touch. At the same time Brent crude blasted past 100 dollars this week thanks to zero progress in the Middle East and ongoing supply chaos. Futures markets show over 70 percent odds of a rate hike right after the FOMC wraps on September 16. The 10 year Treasury yield pushing near 5 percent despite all the liquidity fixes usually spells tighter money tighter conditions and way less love for risky plays like bitcoin. That explains why the big BTC pump from under 65,000 dollars straight to 82,000 dollars slammed into a wall and couldn’t break through lately. Though that’s only the opening act lol.Long Term Chaos Looks Delicious For BTC 🔥
Treasury first doubled long term buybacks to at least 4 billion dollars per round back on August 19 which sparked the initial leg up while long term yields dipped and the dollar got weaker. They leveled it up even more this week to 6 billion dollars total. Now President Trump is floating the idea of dropping 5,000 dollars on every single American adult if Republicans hold Congress in November and that could run between 1.20 trillion and 1.35 trillion dollars if it passes. The analysts over at Kobeissi Letter called the whole mess unprecedented with inflation still too spicy for the Fed to ease up yet deficits and interest costs keep screaming for lower borrowing rates. They think this setup blesses asset holders especially bitcoin gold and stocks but the ride could sting hard before it flips bullish. If inflation keeps climbing and the Fed slaps on more hikes then BTC might feel the squeeze from rising yields at first. The real glow up comes later once fiscal headaches push everyone toward heavier intervention looser money and bigger spending vibes.Just another echo from the void by iconofsin.eth 💖
Maybe you like what i'm doing here and wanna support me via the ethereum blockchain: iconofsin.eth 💖
