Overview

As President Donald Trump’s trade conflict raises global economic tensions, a significant division in bond yields has arisen that may foster a bullish trend in Bitcoin (BTC).

Key Points:

• U.S. Treasury notes are yielding more than 4%, while certain Swiss government bonds exhibit negative yields, with two-year yields at -17.8 basis points.
• Countries with trade surpluses, particularly in Europe and China, might experience deflation, which could compel their central banks to loosen monetary policies, likely facilitating Bitcoin investments.
• The higher U.S. yields and escalating public debt may redirect investment from U.S. assets to cryptocurrency alternatives.

Analysts have indicated that this divergence reflects diverse impacts stemming from the trade dispute, affecting nations differently based on their trade dynamics.

Analyst Insights

EndGame Macro tweeted, “The last time this occurred [with negative Swiss yields], it preceded significant market interventions and global monetary policy shifts.”

Such conditions surrounding negative rates could further catalyze Bitcoin’s appeal as an alternative investment amid increasing global uncertainty.