• UK yields skyrocket to levels echoing last year’s pension crisis
• Fed forecasts ‘mild recession’ in 2023
• Bitcoin tumbled below $26K, causing a $120M liquidation storm
Long Term Holders‘ Bias Ratio Hints at Bitcoin’s Potential Return to Bull Market
The long-term holders‘ bias ratio for Bitcoin suggests that the digital currency may soon be on its way back into a bull market. This could be good news for investors, as it could lead to more positive prices and increased trading activity. Additionally, recent UK yield rates have skyrocketed to levels similar to those seen during last year’s pension crisis.
UK Yield Rates Skyrocket
Last October, the UK Prime Minister Liz Truss introduced a „mini-budget“ which caused major shock waves throughout the markets and even resulted in GBP dropping to 1.11 against USD. Now, with new inflation numbers published yesterday, U.K government yields have risen even further. Yield increases were seen across the entire curve but especially at the long end (30 years). Pension funds use leverage and have significant allocations towards long-end bonds which are highly levered; when prices of these bonds drop, they are required to post collateral or face margin calls. As gilt prices continued their descent, pension providers had no choice but to raise cash quickly as the threat of margin call was imminent. Currently, yields are reaching rates not seen since October’s peak—a sign reminiscent of last year’s fiasco.
Fed Forecasts ‚Mild Recession‘ in 2023
The Federal Reserve has forecasted a mild recession in 2023 due to an increase in inflationary pressures amid growing economic uncertainty worldwide. The Fed also warned that this type of recession could trigger another financial crisis if not properly managed. This development is significant not only for US markets but also global ones as US Treasury yields can follow suit—which would directly affect interest rates within America itself.
Bitcoin Tumbles Below $26K Causing Liquidation Storm
In addition to this news, Bitcoin recently fell below $26K resulting in a massive liquidation storm worth around $120 million dollars across all exchanges tracked by data provider Bybt. While it remains unclear what exactly caused the sudden plunge in price, some speculate that it was likely due to traders cashing out after making big gains over the past few weeks while others point towards miners selling off their BTC holdings due to difficulty adjustments previously mentioned by analysts like Willy Woo and PlanB on Twitter among others.
Mysterious Bitcoin Pool Mines 13% of Blocks Over Past Day
A mysterious mining pool has been responsible for mining around 13% of all bitcoin blocks over the past day according to data from BTC Block Bot tracker service provider Glassnode Insights . Despite such high hash rate activity from this unknown entity there is still no clear indication of who exactly is behind it or why they are engaging in such large scale operations though some believe that it could be part of a larger effort from either institutional players or governments attempting to gain control over certain parts of bitcoin’s network infrastructure for strategic reasons .
