In this episode, Nik Bhatia sits down with TBL Research Associate Demian Schott to break down Bitcoin’s strong price action despite signs of macroeconomic slowdown. They explore how falling bond volatility, shifting interest rate expectations, and the Fed’s potential rate cuts are boosting risk assets through the TBL Liquidity lens. Nik explains how market certainty affects dealer activity, why lower yields matter for Bitcoin and stocks, and what the two-year Treasury yield is signaling about future Fed policy. The conversation also touches on global trade, Eurodollar flows, and the political dynamics influencing inflation and long-term interest rates.
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Nik Bhatia's Twitter: https://twitter.com/timevalueofbtc
Creative Director Matthew Ball's Twitter: https://twitter.com/matthewrball
Researcher Demian Schatt's Twitter: https://x.com/demianschatt
Chapters:
00:00:00 Bitcoin Performance Amidst Economic Slowdown
00:05:37 Understanding Interest Rate Risk and Duration
00:11:06 Understanding Bond Volatility and Bitcoin Performance
00:16:38 Impact of Bond Market Movements on Stocks
00:22:10 Impact of Treasury Market on U.S. Economic Policy
00:27:35 Economic Slowdown and Rate Cuts Ahead
00:32:37 Strategies for Stabilizing Long-Term Inflation
00:38:39 Historical Context of Trump's Political Influence
00:44:34 Observing Economic Predictions: Inflation and Stock Market Impacts
The Bitcoin Layer and its guests do not provide investment advice.