NewsBTC
No Result
View All Result
  • Cryptocurrency News
    • Bitcoin News (BTC)
    • Ethereum News (ETH)
    • Ripple News (XRP)
    • Shiba Inu News (SHIB)
    • Cardano News (ADA)
    • Dogecoin News (DOGE)
    • Solana News (SOL)
    • Litecoin News (LTC)
    • Avalanche News (AVAX)
    • Polygon News (MATIC)
  • Crypto Prices
    • Binance Coin (BNB) Price
    • Bitcoin (BTC) Price
    • Cardano (ADA) Price
    • Chainlink (LINK) Price
    • Dogecoin (DOGE) Price
    • Ethereum (ETH) Price
    • Litecoin (LTC) Price
    • Polkadot (DOT) Price
  • Crypto Resources & Directory
  • All Crypto
  • Play GamesTry
  • CasinosTry
Breaking News: Coinbase Confirms DOJ Investigation Following Major Security Incident
  • Cryptocurrency News
    • Bitcoin News (BTC)
    • Ethereum News (ETH)
    • Ripple News (XRP)
    • Shiba Inu News (SHIB)
    • Cardano News (ADA)
    • Dogecoin News (DOGE)
    • Solana News (SOL)
    • Litecoin News (LTC)
    • Avalanche News (AVAX)
    • Polygon News (MATIC)
  • Crypto Prices
    • Binance Coin (BNB) Price
    • Bitcoin (BTC) Price
    • Cardano (ADA) Price
    • Chainlink (LINK) Price
    • Dogecoin (DOGE) Price
    • Ethereum (ETH) Price
    • Litecoin (LTC) Price
    • Polkadot (DOT) Price
  • Crypto Resources & Directory
  • All Crypto
  • Play GamesTry
  • CasinosTry
Bitcoin News
No Result
View All Result
Breaking News: Coinbase Confirms DOJ Investigation Following Major Security Incident

Why Bitcoin Matters: Negative Yielding Debt Balloons to $13.5 Trillion

Nick Chong
Nick Chong
1 year ago
3 mins read

Reason to trust

Strict editorial policy that focuses on accuracy, relevance, and impartiality
Created by industry experts and meticulously reviewed
The highest standards in reporting and publishing
How Our News is Made

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Ad discliamer

Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio.

If you told economists twenty years ago about Bitcoin (BTC) and negative-yielding debt, they would be shocked. In the 1990s or even the 2000s, decentralized digital money and a bond that made your money disappear with time would have seemed abstract — quite abstract.  Now, however, these two financial trends, which came to fruition mostly over the last decade, have become widely recognized.

Related Reading: Bitcoin (BTC) Loses Multiple Parabolic Trend Lines as Bears Roar

Odd Macroeconomic Trends

What’s weird, Bitcoin and negative-yielding bonds, which are assets that inherently are vastly different, seemingly have the same origins: the 2008 Great Recession. After this horrible financial dilemma, which cost mom & pop investors billions upon billions, the world’s central banks and governments were forced to take drastic action.

The United States’ Federal Reserve started injecting money into the economy through a monetary strategy called “quantitative easing”, better known as QE or open market operations (OMOs).

The European Central Bank (ECB) and Bank of Japan (BOJ) followed suit, also embarking on QE operations to bolster their balance sheet, resulting in a monumental surge in the stock market, and risk-on assets like Bitcoin too.

Related Reading: Cryptocurrency is Part of the Global Currency War, Says Federal Reserve Branch Head

As a result of this and other political and economic factors, there began the era of negative-yielding debt. Now, according to Bloomberg, there exists over $13.4 trillion worth of debt that is negative-yielding — an all-time high for a type of asset that, per normal economic theories, makes no damn sense. What’s weird is that much of this debt is issued by governments or top-graded firms.

https://twitter.com/epomboy/status/1153992196548452352

That’s not the only odd trend in global finance. As Ikigai’s Travis Kling notes, a Federal Funds rate that is above the IOER — the rate which consumer banks holding money with the Fed get paid; and the expectations of more QE are signs that we live in “weird times” from a global macro standpoint.

We talked about it on our quarterly call, but these are weird times we live in for global macro, and the stage is set for them to get meaningfully weirder.

$13tn negative yielding debt. A Fed Funds consistently above the IOER. And the whole world is about to juice more QE. pic.twitter.com/L2MDFuuSPo

— Travis Kling (@Travis_Kling) July 24, 2019

According to Kling and many other investors, these odd macroeconomic trends are clear signs to start to build allocations of safe havens, these being gold and, of course, Bitcoin.

Buy Gold, Buy Bitcoin

In a recent LinkedIn post from Ray Dalio, the co-chairman of massive hedge fund Bridgewater Associates, the billionaire warned of central banks’ effort to devalue their currencies and inflate the economy somewhat artificially.

He also used historical shifts in the macroeconomic and geopolitical climate, like the World Wars and the Great Depression, to explain that the economy is poised to see a “paradigm shift”.

This paradigm shift, per the legendary investor, who sports a net worth of over $18 billion, will see “the value of money depreciate ” and “significant domestic and international conflicts. In other words, the writing is on the wall for an alternative asset and stores of value, like gold or Bitcoin, to gain traction.

Dalio recommends gold, writing that it may be “risk-reducing and return-enhancing” for investors to add the precious metal to their portfolio. The Bridgewater Associates lead adds that normal securities and bonds could see diminishing returns, requiring investors to diversify.

ROCKET FUEL FOR BITCOIN:

– Cut interest rates
– Print money (QE)
– Bitcoin reward halving

Even @RayDalio sees the perfect setup. Now we just need to get him on the Bitcoin train 🙏🏽https://t.co/nTcn33Mx5A

— Pomp 🌪 (@APompliano) July 17, 2019

Arguably, Dalio’s post could also be seen as a tacit recommendation to purchase Bitcoin. You see, the inflationary policies currently being enlisted don’t directly affect BTC.

Unlike traditional fiat currencies, the supply of the cryptocurrency is algorithmically-enforced and the network isn’t controlled by a central authority, giving it the potential to truly gain traction in a world with an uncertain geopolitical atmosphere and questionable macroeconomic health.

Featured Image from Shutterstock
Tweet123Share196ShareSend
Nick Chong
Nick Chong

Nick Chong

I am a writer who has been following Bitcoin for years now. My insights and interviews have been featured in leading publications in the industry such as LongHash and Decrypt. I own a small amount of Bitcoin.

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

Related News

elon musk DOGE

Elon Musk plant onthulling ‘America Party’ – significante invloed op crypto markt verwacht

Er is weer volop reuring rond de naam Elon Musk. Hoewel er na de ruzie tussen Musk en Trump enkele...

Lars Diederiksen 1 hour ago
XLM

XLM Traders, Beware! Stellar’s Funding Rate Is Plummeting

Stellar Lumens hit a critical support level this week at $0.20, putting the token in a precarious spot. At that...

Christian Encila 3 hours ago

Анализ ликвидности BTC: $107 000 и $110 500 станут целями

Цены на Bitcoin (BTC) продолжают колебаться около $108 000 после незначительного прироста в 0,33% за последние 24 часа. Флагманская криптовалюта...

lisachaikina 5 hours ago
Load More

Reason to trust

Strict editorial policy that focuses on accuracy, relevance, and impartiality
Created by industry experts and meticulously reviewed
The highest standards in reporting and publishing
How Our News is Made

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Ad discliamer

Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio.

Related News

Ethereum

Ethereum Breaks Higher With Conviction: No Signs Of A Breakdown Yet

Godspower Owie 21 minutes ago

$400M Crypto Seizure by Secret Service Highlights Why Cold Storage and Best Wallet Are Essential

Aaron Walker 46 minutes ago
비트코인, 도지코인 및 밈코인 일제히 상승세... 토큰6900도 따를까?

비트코인, 도지코인 및 밈코인 일제히 상승세… 토큰6900도 따를까?

Soyeon Lee 1 hour ago

Premium Sponsors

Press Releases

  • 新しい仮想通貨|今買うべき注目の3つの新プロジェクトと高い成長可能性

    ...

    6 minutes ago
  • 本日の暗号資産市場が上昇中、その背景とは?次のラリーに備える仮想通貨おすすめ3選

    ...

    19 minutes ago
  • 2025年にCardano、XRP、Pepeが急騰か?注目の仮想通貨プレセールと次なるミームコインの動向

    ...

    1 hour ago
  • アルトコイン注目銘柄:2025年7月第1週にチェックすべき4銘柄

    ...

    1 hour ago
  • 仮想通貨おすすめ|億万長者を生む可能性が高いのはどちらか?XRP対シバイヌ比較

    ...

    2 hours ago

Newsletter

Be the first to get the latest important crypto news & events to your inbox.

  • This field is for validation purposes and should be left unchanged.

About Us

NewsBTC is a cryptocurrency news service that covers bitcoin news today, technical analysis & forecasts for bitcoin price and other altcoins. Here at NewsBTC, we are dedicated to enlightening everyone about bitcoin and other cryptocurrencies.

We cover BTC news related to bitcoin exchanges, bitcoin mining and price forecasts for various cryptocurrencies.

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

Company

  • About Us
  • Advertising
  • Contact Us
  • Privacy Center

Social

© 2025 NewsBTC. All Rights Reserved.

  • Cryptocurrency News
    • Bitcoin News (BTC)
    • Ethereum News (ETH)
    • Ripple News (XRP)
    • Shiba Inu News (SHIB)
    • Cardano News (ADA)
    • Dogecoin News (DOGE)
    • Solana News (SOL)
    • Litecoin News (LTC)
    • Avalanche News (AVAX)
    • Polygon News (MATIC)
  • Crypto Prices
    • Binance Coin (BNB) Price
    • Bitcoin (BTC) Price
    • Cardano (ADA) Price
    • Chainlink (LINK) Price
    • Dogecoin (DOGE) Price
    • Ethereum (ETH) Price
    • Litecoin (LTC) Price
    • Polkadot (DOT) Price
  • Crypto Resources & Directory
  • All Crypto
  • Play Games
  • Casinos
Advertise

© 2025 NewsBTC. All Rights Reserved.

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy Center or Cookie Policy.