Stanley Druckenmiller shorts US Treasury bonds, BTC price faces significant fluctuation before January 2025

Last month, after the Federal Reserve announced a two-notch rate cut, Stanley Druckenmiller, a famous investor and former deputy of Soros, publicly stated that he had adopted the strategy of shorting US treasuries (UST). This news quickly sparked widespread attention and discussion in the financial markets, becoming a market focus.

Currently, the interweaving of the US economic and political situation has further intensified market uncertainty. With Trump returning to the White House in January 2025, the US debt issue is considered a potential 'market trigger point'. The evolution of this situation may have a profound impact on the price trend of BTC.

US debt issue becomes the focus: the possibility of capital flowing back into the bond market increases

Currently, the intertwining of the economic and political situation in the United States has further intensified market uncertainty. With the possibility of Trump returning to the White House in January 2025, the US debt issue is considered a "time bomb" that could trigger the next market turmoil. Under the leadership of the Biden administration, government spending continues to rise, and the issuance of US debt is becoming increasingly significant. Whether the Republican Party can effectively respond to this fiscal challenge is a key concern for the market.

Over the past few decades, the United States has relied on the debt-based economic model to export the US dollar. However, the rise in US bond yields shows a decrease in its attractiveness. Many countries are reducing their reliance on US bonds. If the US bond market crashes and there are no new buyers to support it, the global financial system may face enormous risks.

Zucan Miller's shorting move is a forward-looking layout aimed at addressing the potential risk outbreak.

In the past two months, the yield on 10-year US Treasury bonds has been rising continuously.

Christmas market: BTC may be affected, short-term prices face Fluctuation risk

Market observations show that the rise in US bond yields may attract capital back to the bond market, thereby reducing the inflow of risk assets such as BTC. In addition, the upcoming Christmas market may also have an impact on the price of BTC. Historical data shows that at the end of December every year, there is often a pullback in stock prices and other assets due to institutional investors' settlement positions, and BTC may be affected as well.

Future Outlook: Potential Favourable Information for Bitcoin

Despite possible Fluctuation in the short term, the macro market environment still favors Bitcoin in the long run. In the event of a crisis in the US bond market, the Trump administration is likely to implement quantitative easing (QE) measures, which will increase global Liquidity and drive funds towards scarce assets such as BTC.

In addition, with the gradual popularization of BTCETF, more institutional funds may pour into this area, providing long-term support for BTC prices. According to the latest data, as of November 25, 2024, BTCETF has achieved net inflows of funds for five consecutive days, showing investors' continuous confidence in the asset. If major global economies relax cryptocurrency-related regulations, it will further help BTC prices to reach new highs.

Investors need to closely follow the changes in the macro economy and market policies, and take rational response measures. As an emerging asset, the value logic of BTC is gradually becoming clear, and the price of BTC may fluctuate in the short term due to market panic. In the long-term strategy, the value logic of BTC as an emerging asset will become more and more clear.

To understand the short-term BTC price trend analysis, please click on 'BTC Price' to check.

Risk Warning:

Currently, there is an overheated trend in the market sentiment, and the price of BTC may experience a pullback before January 2025. However, if the pullback does occur, the price of BTC will have better growth potential afterwards.

Disclaimer:

Price analysis and valuation are influenced by multiple factors, and theoretical analysis does not necessarily mean that Token will reach the envisaged price level. Therefore, the content of this article does not constitute any investment advice. Investors need to conduct their own research.

This article Stanley Druckenmiller shorted US Treasury bonds, BTC price will face greater fluctuation before January 2025, first appeared on ChainNews ABMedia.