The most important chart of all the markets is this little kid here.
This chart shows us the cost of US government borrowing which also means the strength of the US dollar as cash in the investors portfolio,
As we can see in this monthly graph that the government's 10-year borrowing yield is 3% (high going back to 2018 before COVID)
What is the meaning of this?
It means that the cash held by households, investors and institutions has reached its peak, as no one is buying and not investing and inflation has remained high and the Federal Reserve will target higher rates on the federal funds,
All this leads to increased risk appetite as bond yields may regress south + inflation starts to fall = real yield will approach 0% after being in negative territory.
The bear market will be over and risky assets like cryptocurrencies may welcome decent green days if not months.
*Note, if the 10-year US yield continues to rise to 5% and 6%, then we will see the euro, stocks, Japanese yen, as well as cryptocurrencies in the best place to buy them all
This chart shows us the cost of US government borrowing which also means the strength of the US dollar as cash in the investors portfolio,
As we can see in this monthly graph that the government's 10-year borrowing yield is 3% (high going back to 2018 before COVID)
What is the meaning of this?
It means that the cash held by households, investors and institutions has reached its peak, as no one is buying and not investing and inflation has remained high and the Federal Reserve will target higher rates on the federal funds,
All this leads to increased risk appetite as bond yields may regress south + inflation starts to fall = real yield will approach 0% after being in negative territory.
The bear market will be over and risky assets like cryptocurrencies may welcome decent green days if not months.
*Note, if the 10-year US yield continues to rise to 5% and 6%, then we will see the euro, stocks, Japanese yen, as well as cryptocurrencies in the best place to buy them all