Close Menu
  • News
    • Bitcoin
    • Altcoins
    • DeFi
    • Regulation
    • Market Cap
    • Web 3
    • Scam
  • Blockchain
  • NFT
  • Metaverse
  • Analysis
  • Learn
  • Blog
  • Contact
    • Tech7685@gmail.com
What's Hot

Stability World AI and Web3 decision unite to reform the confidence in decentralized ecosystems

2025-05-11

NFT -turns 10.6% to $ 115 million, Doodles Rally 500%

2025-05-11

.Dao: the domain for decentralized communities and administration

2025-05-11
Facebook X (Twitter) Instagram
  • Contact
  • Terms & Conditions
  • Privacy Policy
  • DMCA
  • Advertise
  • BitcoinPlatform.com
Facebook X (Twitter) Instagram
Free Cryptocurrency – Bitcoin | Altcoins | Blockchain | News Stories Updated Daily
  • News
    • Bitcoin
    • Altcoins
    • DeFi
    • Regulation
    • Market Cap
    • Web 3
    • Scam
  • Blockchain

    Stability World AI and Web3 decision unite to reform the confidence in decentralized ecosystems

    2025-05-11

    DAC and Origo Partner to transform health care via Web3 Innovation

    2025-05-11

    Tether to make non-right wallet template: Details

    2025-05-11

    Map -Protocol reveals revolutionary interoperability between Bitcoin and Solana networks

    2025-05-11

    DAC -Platform to redefine Web3 experiences in strategic cooperation with Fishcake Labs

    2025-05-11
  • NFT

    NFT -turns 10.6% to $ 115 million, Doodles Rally 500%

    2025-05-11

    Drink-to-earn? A new sparkling water comes with an NFT and points

    2025-05-08

    Cobie says we will return if someone buys this $ 20 million NFT

    2025-05-08

    Edge Matrix, Colabs Partner to strengthen NFT -Makers

    2025-05-08

    Argentinian football club Partners with StepN to launch digital sneakers

    2025-05-05
  • Metaverse

    Shib: The Metaverse – Part of the expanding Shiba Inu ecosystem

    2025-01-03

    Experience to Earn: Everdome’s Metaverse Frontier

    2024-12-30

    Beyond Bots: Meta Motivo and the Dawn of Human Digital Life

    2024-12-13

    Exploring NetVRk: What’s Behind This AI-Powered Virtual Universe?

    2024-10-28

    Council of Europe emphasizes the impact of Metaverse on privacy and democracy

    2024-09-05
  • Analysis

    XRP has to close above these price levels to make Beararish forecast invalid

    2025-05-11

    Standard Chartered Analy supports Bitcoin -Price forecast, now calls $ 120,000 BTC ‘Too Low’: Report

    2025-05-11

    Bullish Continuation for XRP price shows possible recovery up to $ 4

    2025-05-11

    Top US Crypto Exchange Coinbase to acquire Derivativa Platform Deribit

    2025-05-10

    Bitcoin – Price is rising by $ 100k – Bull Market officially back?

    2025-05-10
  • Learn

    What Is Proof-of-Authority (PoA)?

    2025-05-10

    What Is Proof-of-Stake (PoS)? A Beginner’s Guide

    2025-05-09

    What Is a Layer-1 (L1) Blockchain?

    2025-05-03

    What is a Layer-2 (L2) Blockchain Network Solution?

    2025-05-02

    What Is a Layer-0 Protocol?

    2025-05-02
  • Blog
  • Contact
    • Tech7685@gmail.com
Free Cryptocurrency – Bitcoin | Altcoins | Blockchain | News Stories Updated Daily
Home»Bitcoin»Implications Of Bill Ackman’s 30-Year T-Bills Short
Bitcoin

Implications Of Bill Ackman’s 30-Year T-Bills Short

2023-08-04No Comments5 Mins Read
Share
Facebook Twitter LinkedIn Pinterest Email

What does this mean for Bitcoin and the broader crypto market? In a surprising move that has sent ripples through the financial world, billionaire hedge fund manager Bill Ackman recently announced that he is shorting 30-year Treasury bills. Ackman predicts that yields could soon skyrocket to 5.5%, a move he is positioning as a hedge against the impact of long-term rates on stocks in a world he believes will be characterized by persistent 3% inflation.

“I have been surprised how low US long-term rates have remained in light of structural changes that are likely to lead to higher levels of long-term inflation,” Ackman wrote on Twitter. He cited factors such as de-globalization, higher defense costs, the energy transition, growing entitlements, and the greater bargaining power of workers as potential drivers of this inflation.

Ackman also pointed to the overbought nature of long-term Treasurys and the increasing supply of these securities due to the U.S.’s $32 trillion debt and large deficits. “When you couple new issuance with QT, it is hard to imagine how the market absorbs such a large increase in supply without materially higher rates,” he added. Remarkably, the 30 year yield climbed to 4.28% yesterday.

30 year yield climbing
30 year yield climbing | Source: Twitter @GRDecter

However, not everyone agrees with Ackman’s perspective. Ram Ahluwalia, CEO of Lumida Wealth, suggested that Ackman’s views might already be priced into the market. “When someone has an idea, especially a hedge fund manager, it’s good mental habit to assume the idea is Consensus,” Ahluwalia wrote on Twitter. He even suggested taking the opposite view, advocating for buying 10-year bonds in the 4.1 to 4.25% range and mortgage bonds at 6.5 to 7%.

See also  December Ethereum ETF Launch Will Be 'Better' - Are Bitcoin ETFs Why?

Meanwhile, Lisa Abramowicz, a Bloomberg analyst, noted that the U.S. Treasury selloff has been driven by long-dated notes, not those most sensitive to Fed policy. “This suggests two things: traders expect inflation to stay higher for longer and they question whether the Fed is truly going to raise rates high enough to achieve 2% inflation,” she said.

Implications For Bitcoin And The Crypto Market?

Since the opinions are divergent and, moreover, Bitcoin and bond yields are linked in several ways, there are several potential scenarios.

Scenario 1: Yields Rise Significantly

If Bill Ackman’s prediction comes true and the yield on 30-year Treasury bills rises significantly to around 5.5%, this could have several implications for Bitcoin.

Increased Risk Appetite: Higher bond yields could indicate a greater risk appetite among investors. If investors are willing to accept higher risk for higher returns, they might also be more inclined to invest in Bitcoin, which is often seen as a riskier asset. This could potentially drive up the price of Bitcoin.

Inflation Hedge: If the rise in bond yields is driven by increased inflation expectations, Bitcoin could attract more investment as a potential store of value. Bitcoin, often referred to as ‘digital gold’, has been seen by some investors as a hedge against inflation. If inflation continues to rise and erodes the value of fiat currencies, more investors might turn to Bitcoin, pushing its price higher. However, that’s a narrative that still needs to be proven over time.

Furthermore, it’s important to note that if yields rise too quickly or too high, it could lead to a sell-off in risk assets, including Bitcoin, as investors move to safer assets. This could potentially put downward pressure on Bitcoin’s price.

See also  'Bitcoin Landfill' Man loses attraction, eyes 'last legal option' to restore $ 672 million

Scenario 2: Yields Remain Stable Or Fall

If, contrary to Ackman’s prediction, yields remain stable or fall, this could also impact Bitcoin.

Risk Aversion: Lower yields could suggest that investors are moving towards safer assets, which could negatively impact Bitcoin prices. If investors are less willing to take on risk, they might move away from Bitcoin towards safer assets like bonds.

Liquidity Conditions: Bond yields can reflect liquidity conditions in the market. If yields fall, it could suggest that liquidity is high. In such a scenario, there could be more capital available for investment in assets like Bitcoin, potentially supporting its price.

Scenario 3: Market Uncertainty Increases

If market uncertainty increases, for example due to concerns about U.S. fiscal policy or rapid repricing in the bond market, Bitcoin could potentially serve as a hedge.

Hedge Against Uncertainty: In times of market uncertainty, like in the banking crisis in March, some investors might turn to Bitcoin as a potential hedge. If Bitcoin’s perceived status as a ‘digital gold’ or safe haven asset strengthens, this could potentially attract more investment and drive up its price.

However, it’s important to note that Bitcoin’s reaction to market uncertainty can be unpredictable and can depend on a variety of factors, including investor sentiment and broader market conditions.

In conclusion, the potential impact of bond yield movements on Bitcoin’s price is complex and can depend on a variety of factors. Investors should remain vigilant and consider a range of potential scenarios.

Otherwise, Bitcoin and crypto intrinsic factors like the approval of a Bitcoin spot ETF, a Ether futures ETF or any actions by the US Department of Justice (DOJ) against Binance, among others, have the potential to cause an increased volatility.

See also  Arizona ready to create first-in-nation state crypto reserve fund threatening

 

Featured image from CNBC, chart from TradingView.com



Source link

30Year Ackmans Bill Implications Short TBills
Share. Facebook Twitter Pinterest LinkedIn Tumblr Email

Related Posts

Bitcoin: Whales withdraw 110k BTC – a prelude to a new ATH?

2025-05-11

Bitcoin Price Watch: Miners show strength, but lungs are in danger – why?

2025-05-11

Bitcoin Bulls Beware! – This price can be a high -leverage false door

2025-05-11

Loss Bitcoin -bears? $ 31 million wiped out in BTC Shorts Liquidation

2025-05-11
Add A Comment
Leave A Reply Cancel Reply

Top Posts

US economy, liquidity injections and how they can help crypto and Bitcoin

2025-01-13

‘Nasdaq on Solana’ vision sees progress with opening bell launch

2025-05-10

cLabs CTO Marek Olszewski on why Celo wants to ‘come home’ to Ethereum

2023-11-16
Editors Picks

Solana-based Altcoin skyrockets 22% in hours after Coinbase announced its official listing

2024-01-18

TRX may still have a shot at a bullish streak

2023-10-16

What Polygon’s NFT performance means for your MATIC holdings

2023-07-21

Trader Updates Outlook on Crypto Asset That’s Up Over 60% This Month, Says One Altcoin’s Uptrend Is Still Strong

2023-08-19
About
About

Our mission is to develop a community of people who try to make financially sound decisions. The website strives to educate individuals in making wise choices about Cryptocurrencies, Defi, NFT, Metaverse and more.

We're social. Connect with us:

Facebook X (Twitter) Instagram Pinterest YouTube
Top Insights

Stability World AI and Web3 decision unite to reform the confidence in decentralized ecosystems

NFT -turns 10.6% to $ 115 million, Doodles Rally 500%

.Dao: the domain for decentralized communities and administration

Get Informed

Subscribe to Updates

Get the latest news and Update from Free.cc about Crypto, Metaverse, NFT and more.

  • Contact
  • Terms & Conditions
  • Privacy Policy
  • DMCA
  • Advertise
  • BitcoinPlatform.com
© 2025 Free.cc - All rights reserved. Contact: info@free.cc

Type above and press Enter to search. Press Esc to cancel.

  • bitcoinBitcoin(BTC)$104,188.88-0.67%
  • ethereumEthereum(ETH)$2,513.47-2.70%
  • tetherTether USDt(USDT)$1.000.02%
  • rippleXRP(XRP)$2.37-4.29%
  • binancecoinBNB(BNB)$650.61-2.17%
  • solanaSolana(SOL)$173.22-2.76%
  • usd-coinUSDC(USDC)$1.000.00%
  • dogecoinDogecoin(DOGE)$0.232512-7.76%
  • cardanoCardano(ADA)$0.81-4.15%
  • tronTRON(TRX)$0.265096-0.34%
  • suiSui(SUI)$4.02-2.63%
  • chainlinkChainlink(LINK)$17.10-1.20%
  • avalanche-2Avalanche(AVAX)$24.81-4.07%
  • stellarStellar(XLM)$0.306187-4.53%
  • shiba-inuShiba Inu(SHIB)$0.000016-6.71%
  • hedera-hashgraphHedera(HBAR)$0.206857-5.81%
  • the-open-networkToncoin(TON)$3.41-3.36%
  • hyperliquidHyperliquid(HYPE)$24.88-5.27%
  • bitcoin-cashBitcoin Cash(BCH)$408.07-5.16%
  • polkadotPolkadot(DOT)$5.10-4.05%
  • piPi(PI)$1.1142.17%
  • unus-sed-leoUNUS SED LEO(LEO)$8.340.83%
  • litecoinLitecoin(LTC)$100.29-4.59%
  • moneroMonero(XMR)$331.891.88%
  • pepePepe(PEPE)$0.0000140.32%
  • bitget-tokenBitget Token(BGB)$4.88-1.93%
  • daiDai(DAI)$1.00-0.01%
  • ethena-usdeEthena USDe(USDE)$1.00-0.01%
  • uniswapUniswap(UNI)$6.91-7.66%
  • bittensorBittensor(TAO)$460.72-1.16%
  • nearNEAR Protocol(NEAR)$3.14-5.79%
  • aptosAptos(APT)$5.88-3.03%
  • aaveAave(AAVE)$220.99-3.40%
  • okbOKB(OKB)$55.14-1.61%
  • ondo-financeOndo(ONDO)$1.04-5.64%
  • kaspaKaspa(KAS)$0.1176806.56%
  • internet-computerInternet Computer(ICP)$5.77-1.01%
  • ethereum-classicEthereum Classic(ETC)$19.95-3.46%
  • official-trumpOFFICIAL TRUMP(TRUMP)$13.72-8.67%
  • mantleMantle(MNT)$0.811.59%
  • render-tokenRender(RENDER)$5.21-4.75%
  • gatechain-tokenGateToken(GT)$21.88-2.67%
  • vechainVeChain(VET)$0.031189-3.42%
  • polygon-ecosystem-tokenPOL (prev. MATIC)(POL)$0.257096-6.37%
  • crypto-com-chainCronos(CRO)$0.098435-6.18%
  • ethenaEthena(ENA)$0.408807-2.45%
  • arbitrumArbitrum(ARB)$0.451353-6.06%
  • usd1World Liberty Financial USD(USD1)$1.00-0.02%
  • filecoinFilecoin(FIL)$3.14-3.22%
  • cosmosCosmos(ATOM)$5.31-1.38%
  • bitcoinBitcoin(BTC)$104,188.88-0.67%
  • ethereumEthereum(ETH)$2,513.47-2.70%
  • tetherTether USDt(USDT)$1.000.02%
  • rippleXRP(XRP)$2.37-4.29%
  • binancecoinBNB(BNB)$650.61-2.17%
  • solanaSolana(SOL)$173.22-2.76%
  • usd-coinUSDC(USDC)$1.000.00%
  • dogecoinDogecoin(DOGE)$0.232512-7.76%
  • cardanoCardano(ADA)$0.81-4.15%
  • tronTRON(TRX)$0.265096-0.34%
  • suiSui(SUI)$4.02-2.63%
  • chainlinkChainlink(LINK)$17.10-1.20%
  • avalanche-2Avalanche(AVAX)$24.81-4.07%
  • stellarStellar(XLM)$0.306187-4.53%
  • shiba-inuShiba Inu(SHIB)$0.000016-6.71%
  • hedera-hashgraphHedera(HBAR)$0.206857-5.81%
  • the-open-networkToncoin(TON)$3.41-3.36%
  • hyperliquidHyperliquid(HYPE)$24.88-5.27%
  • bitcoin-cashBitcoin Cash(BCH)$408.07-5.16%
  • polkadotPolkadot(DOT)$5.10-4.05%
  • piPi(PI)$1.1142.17%
  • unus-sed-leoUNUS SED LEO(LEO)$8.340.83%
  • litecoinLitecoin(LTC)$100.29-4.59%
  • moneroMonero(XMR)$331.891.88%
  • pepePepe(PEPE)$0.0000140.32%
  • bitget-tokenBitget Token(BGB)$4.88-1.93%
  • daiDai(DAI)$1.00-0.01%
  • ethena-usdeEthena USDe(USDE)$1.00-0.01%
  • uniswapUniswap(UNI)$6.91-7.66%
  • bittensorBittensor(TAO)$460.72-1.16%
  • nearNEAR Protocol(NEAR)$3.14-5.79%
  • aptosAptos(APT)$5.88-3.03%
  • aaveAave(AAVE)$220.99-3.40%
  • okbOKB(OKB)$55.14-1.61%
  • ondo-financeOndo(ONDO)$1.04-5.64%
  • kaspaKaspa(KAS)$0.1176806.56%
  • internet-computerInternet Computer(ICP)$5.77-1.01%
  • ethereum-classicEthereum Classic(ETC)$19.95-3.46%
  • official-trumpOFFICIAL TRUMP(TRUMP)$13.72-8.67%
  • mantleMantle(MNT)$0.811.59%
  • render-tokenRender(RENDER)$5.21-4.75%
  • gatechain-tokenGateToken(GT)$21.88-2.67%
  • vechainVeChain(VET)$0.031189-3.42%
  • polygon-ecosystem-tokenPOL (prev. MATIC)(POL)$0.257096-6.37%
  • crypto-com-chainCronos(CRO)$0.098435-6.18%
  • ethenaEthena(ENA)$0.408807-2.45%
  • arbitrumArbitrum(ARB)$0.451353-6.06%
  • usd1World Liberty Financial USD(USD1)$1.00-0.02%
  • filecoinFilecoin(FIL)$3.14-3.22%
  • cosmosCosmos(ATOM)$5.31-1.38%