What’s In Demand As US Bond Market Looks Fragile

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What’s In Demand As US Bond Market Looks Fragile – Crypto News

Published

5 months ago

April 11, 2025

Dripp

The US economy seems to be very fragile at the moment, and talks of a global recession are on the rise, with yellow metal Gold shining as a safe haven asset. Bitcoin price has also bounced back from the lows of under $75,000 this week, to now trading around $82,000, while the US-China trade war escalates to new highs. Gold has seen a consistent upside this year, while BTC has been subject to massive volatility.

Gold or Bitcoin: Who Will Have The Last Laugh In Trump Tariff War?

With gold price surging to an all-time high og $3,200 per ounce, economist and Bitcoin critic Peter Schiff has raised warning bells. Meanwhile, U.S. dollar strength wanes, stock futures decline, and the 10-year Treasury yield edges toward a critical threshold of 4.5%.

Schiff cautioned that if the yield surges beyond this, it could lead to a major financial unwinding. In his message on the X platform, Peter Schiff wrote:

“Gold just topped $3,200. The dollar and stock futures are cracking. 10-year Treasury yield about to break 4.5%. When it does this could spiral out of control. They better get the plunge protection team onboard tonight. That will only make it worse, but it will buy some time.”

With nearly 15% gains since the beginning of 2025, the yello metal is clearly showing signs of a safe haven asset. On the contrary Bitcoin price is down 12% since the beginning of the year. As of press time, BTC price is trading 1.26% down at $80,456, with daily trading volumes plummeting 43%.

US Bond Market Shows Extreme Fragility

The attention has largely shifted to the US bond market amid the acute sell-off in the $29 trillion US Treasury market. As the trade war intensifies, China has been dumping T-bills in huge quantity over the past weeks while accumulating Gold.

Treasuries, long regarded as a safe haven during financial turbulence, are displaying unusual behavior by rising instead of falling. Typically, during periods of geopolitical and economic uncertainty, investors shift away from riskier assets like stocks to the security of bonds, which traditionally pushes yields lower. This time, however, the trend has reversed.

This shows that the world is looking beyond USD as a safe haven and looking for other hedge options amig the global market uncertainty. Bitcoin is also gaining some traction in this period.

BTC Whale Accumulation On The Rise

Blockchain analytics firm Santiment reported that BTC’s largest holders aka whales, have increased in number following President Donald Trump’s announcement of a 90-day tariff pause yesterday. Data reveals a notable uptick of 132 new wallets holding 10 or more BTC in just the past 24 hours, signaling renewed confidence from key crypto stakeholders.

Source: Santiment

This shows that big market players still have confidence in the asset class. Furthermore, BTC price rise chances are higher amid the growing expectations of Fed rate cut amid the US CPI print.