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U.S. Treasury bonds could go negative, Bitcoin to become the Holy Grail

Don’t invest unless prepared to lose all the money you invest. This is a high-risk investment, you shouldn’t expect to be protected if something goes wrong.

Liquidity on Bitcoin Perpetuals Exchange FTX Rises Up
Liquidity on Bitcoin Perpetuals Exchange FTX Rises Up

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In 2008 when the Great Recession set in, it brewed increased low negative interest rates and Bitcoin. The central banks opted for more financial policies to curb the impact of the recession.

Now, to provide stability of macroeconomy and spur economic growth, central banks of different countries have been steadily reducing the policy interest rates. The interest rates are now negative in most parts of Europe and Japan. That means central banks pay the banks to borrow money.

However, a long time Bitcoin bull and Wall Street veteran said yields may likely fall below 0%, which will be a heavy boost for the crypto market.

Treasury Bonds may still go negative

Raoul Pal, former head at Goldman Sachs’ hedge fund sales, shared a chart to buttress the point that treasury bonds could go a bit lower and into a negative level in due course.

The chart indicated that the 10-year treasury is still heading into the 0% level in the coming months and years. It shows the yield of the bond in a macro decline, as it has fallen to a predictive descending channel for the past two decades.

Negative yield will be first in history

A high-maturity treasury has never gone negative in the history of the U.S. If it happens, as predicted by financial experts, it will be the first time it’s happening. In this case, many would turn to Bitcoin and other cryptocurrencies as a safe haven. Analyst opined that the Bitcoin market will be extremely bullish as a result.

Cameron Winklevoss of Gemini also commented on the already existing negative yield bonds around the world.  “$17 trillion are currently held in negative interest bonds. 17 trillion reasons why you should own Bitcoin.” He said.

He said equality will decrease rapidly in the present world where negative interest rates abound. To further buttress his point, he cited the Cantillion effect which states that printing leads to dramatic inequality, a concept prevalent among investors/libertarian economists.

H also stated that many people will turn to the only logical solution that still has stability. In this case, they won’t look beyond Bitcoin.

Paul Tudor Jones, a renowned Wall Street investor has also corroborated the belief that Bitcoin could become the Holy Grail and safer investment option as the world economies are crumbling with paper currency as the legal tender.

He previously said that in this present world of very easy monetary policy, Bitcoin has now become “the fastest horse in the race.”

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