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The losses on US Treasuries recently surpassed $1.5 trillion and the likely outcome is turbulent markets, but how will Bitcoin price fare? The U.S. economy has been facing turbulent times lately, with the U.S. personal consumption expenditure (PCE) inflation index rising by a significant 3.5% over the past 12 months. Even when excluding the volatile food and energy sectors, it's evident that the efforts made by the U.S. Federal Reserve to curb inflation have fallen short of their 2% target rate. U.S. Treasuries have lost a staggering $1.5 trillion in value, primarily due to these rate hikes. This has led investors to question whether Bitcoin (BTC) and risk-on assets, including the stock market , will succumb to heightened interest rates and a monetary policy aimed at cooling economic growth. Theoretical losses of U.S. Treasury holders, USD. Source: @JoeConsorti As the U.S. Treasury keeps flooding the market with debt, there's a real risk that rates could climb even highe...

Historic Stock Trends Melker highlighted that market corrections historically follow FED pivots and rate cuts. Historically, Central banks, including the Federal Reserve, often adjust their monetary policies in response to changing economic conditions.  advertisement Rate cuts are typically implemented when the economy is facing headwinds, aiming to stimulate borrowing, spending, and investment. However, as the tweet suggests, these rate cuts might not have an immediate positive impact on the stock market. Instead, they could signal underlying concerns about the economy that eventually lead to a correction or downturn in the market. The Stock Market historically corrects AFTER the Fed pivot. Rate cuts generally precede major dips. Recommended Articles Crypto Presale Projects For 2023 To Invest; Updated List Must Read ...

The Federal Reserve opted to keep interest rates at their current level Wednesday, marking the first pause in 15 months.  Ongoing improvements in the labor market and low unemployment, coupled with elevated inflation, led to the committee’s decision, the central bank wrote in Wednesday’s statement.  The move is the first time the Fed has paused increases since starting to raise rates in March 2022. The stretch lasted ten consecutive rate increase rounds, a strategy the Fed hoped will curb the highest inflation the country has seen in more than four decades, but markets have fretted over whether a soft landing is achievable. “Holding the target range steady at this meeting allows the Committee to assess additional information and its implications for monetary policy,” central bankers wrote in Wednesday’s statement. “In determining the extent of additional policy firming that may be appropriate to return inflation to 2 percent over time, the Committee will take into account the ...