Bitcoin On The Brink As Trump Tariffs Shatter Bond Market

The bond market is exhibiting signs of distress, with experts pointing to a potential "broken" system and disorderly liquidation. A significant spike in the 30-year US Treasury yield has triggered alarms about a possible unwind of the basis trade. Market participants are expressing concerns about liquidity issues and the potential for a broader financial crisis. Some analysts are suggesting that a hedge fund implosion or foreign creditor dumping of treasuries could be contributing factors. Calls for Federal Reserve intervention, including emergency rate cuts and quantitative easing, are increasing to stabilize the market. The bond market's dysfunction coincides with a collapse in crude oil prices, signaling systemic stress. Bitcoin and crypto markets face both risks and opportunities due to their correlation with risk assets amid the turmoil. The US Dollar Index suggests domestic factors, like leveraged position liquidations, are driving the bond sell-off. Some anticipate Bitcoin could benefit if the Fed intervenes or from a weaker dollar policy. The possibility of a global sovereign debt bubble bursting, benefiting neutral assets like Bitcoin, is also being discussed.