Bitcoin Bulls Hear ‘Fed–Treasury Accord’ And Smell Yield-Curve Control
Kevin Warsh’s push for a new Fed–Treasury “accord” is reigniting a familiar market argument: whether Washington is drifting toward a softer-rate, higher-liquidity regime that tends to favor hard assets, including bitcoin and crypto, even if it raises the stakes for bonds. The debate flared after Bloomberg reported that Kevin Warsh floated the idea of “a new accord with the Treasury Department,” echoing the 1951 agreement that redefined the relationship between the two institutions. Bloomberg reported over the weekend that the concept could amount to a limited bureaucratic revamp, but a....
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Yield curve control is the next saga in the global monetary policy experiment. What does it mean for the economy and what are the future consequences?
Arthur Hayes believes the macro domino that sends Bitcoin to $1 million has just tipped. In a post on X late Monday, the BitMEX co-founder argued that the US Federal Reserve is preparing markets for “yield curve control” (YCC) under what he called a “third mandate,” pointing to the confirmation of economist Stephen Miran to the Fed’s Board of Governors and a fresh Bloomberg report raising the same specter. “With Fed board member Miran now confirmed, the MSM is preparing the world for the Fed’s ‘third mandate’ which is essentially yield curve control. LFG! YCC -> $BTC = $1m,” Hayes....
A sharp spike in the 10-year U.S. Treasury yield and an extended Big Tech sell-off is weighing on cryptocurrency prices as investors flee risk-on assets. Bitcoin (BTC) continues to struggle below $50,000 on March 5 as a spike in the 10-year Treasury yield to 1.62%, its highest level in over a year, has taken a toll on global financial markets and hit risk-assets especially hard. At the time of writing the S&P 500 and Dow are up 0.46% and 0.64% but the tech sector sell off continues as companies like Apple and Tesla continue to slump further. Economists see rising bond yields as the result....
A conversation about the relationship between bitcoin and fiat currencies, and how a yield curve inversion is impacting recommended portfolio allocations.
An obscure spread at the heart of US money markets just flashed a bright warning, and crypto traders are pouncing on the signal. The Secured Overnight Financing Rate (SOFR) printed 4.29% on Wednesday, while the Federal Reserve’s overnight reverse-repo (ON RRP) award rate sat at 4.00%, putting the SOFR–RRP spread at 29 basis points on a non-quarter-end day — an unusually wide gap that points to tightening funding conditions in the plumbing of the financial system. On the same day, the Fed’s Standing Repo Facility (SRF) was tapped for $6.5 billion — the largest non-quarter-end draw since its....