Soaring bond prices signal ‘structural’ shift and Bitcoin ‘supercycle’: Analyst
Fixed-income investors are in a “panic” as government securities, once seen as low-risk, begin to crack, according to BitMEX researcher Shang Wu.
Rising government bond yields signal a coming “structural” shift that will create a Bitcoin “supercycle” of rising prices, as investors flee debasing assets for one that cannot be inflated, according to Shang Wu, a senior research analyst at crypto exchange BitMEX.
The yield on the 30-year US Treasury broke past 5.14% on Tuesday, while the Bank of Japan’s 10-year government bond yield touched 2.8%, Wu said.
These yields are unsustainable in the long-term and will force governments to choose between debasing their currencies and a “sovereign debt collapse,” Wu said.