Summary:
- Cameron Winklevoss has pointed out that Bitcoin has been remarkably resilient as the stock markets lose trillions in value.
- Bitcoin could be decoupling from traditional markets amidst the market turmoil.
- The Bank of England deciding to buy back bonds has nudged Bitcoin towards becoming a store of value.
The co-founder of Gemini Crypto exchange and Winklevoss Capital, Tyler Winklevoss, has pointed out that Bitcoin has been remarkably resilient in the last few weeks and as the stock markets continue losing trillions in value. He also forecasted that Bitcoin could be decoupling from traditional markets, but he was unsure if a BTC bottom had been hit. He said:
Bitcoin has been remarkably resilient the past few weeks despite the stock market losing trillions in value. No idea if this is the bottom but there’s been a curious decoupling. Are folks starting to re-examine the “disaster insurance” thesis?
Bank of Englands Plans to Buy Back Bonds Stimulated the Markets
Yesterday, September 28th, the Bank of England made an unexpected move by announcing that it would start buying back bonds ‘to restore orderly market conditions.’ This is after the Great Britain Pound hit a record-breaking low of $1,03 against the US dollar, indicating that Prime Minister Truss’s new government’s plans to lower taxes caused more panic than excitement that they could spur growth in the UK.
The Bank of England further added that they would ‘carry out temporary purchases of long-dated UK government bonds from September 28th.’ These plans managed to excite the markets, with Bitcoin responding positively from $18.4k to a local peak of $19,790.
Bitcoin is Lord Satoshi’s Cure – Arthur Hayes
The move by the Bank of England elicited a response by Bitmex’s founder and former CEO, Arthur Hayes, who stated that Yield Curve Control (YCC) was in play by global central banks and Bitcoin is the only cure, as expressed in the tweet below.
A virus starts in one host and moves on quickly to the next. YCC coming to a local pub near you. All central bankers think and act alike. If it’s happening in the UK, your banana republic is next. $BTC is Lord Satoshi’s cure. https://t.co/qAWMLt0adi
— Arthur Hayes (@CryptoHayes) September 28, 2022
He once described YCC as ‘a form of explicitly fixing the Treasury curve. He gave the example of post-World War II when the US Fed and Treasury ‘colluded to fix the 10-year treasury yield and cap retail bank deposit rates so that real rates were extremely negative..’
In another blog post, Mr. Hayes explained that the European Central Bank, or any other major Central Bank, will carry out YCC as described below:
© Solana Daily Brief, Inc. All Rights Reserved. This article is for informational purposes only. It is not to be used as legal, tax, investment, financial, or other advice.When a central bank commits to YCC, its balance sheet grows slowly, then accelerates upwards in a nearly straight line — blowing through all previous asset-holding highs extremely quickly.
Hyperinflation is non-linear, and the ESF balance will grow rapidly as everyone dumps their JGB’s and EU bonds into the Fed, and the Japanese and EU governments continue to issue bonds at an increasing rate to fund their budget deficits.