Bitcoin maintains rally after the Fed's bond bailout of crypto/disruptive tech/start ups. Credit Suisse writes-down $17 Billion of bonds at zero worth, underwritten by the Swiss National Bank. Bond markets are showing 1987 and 2008 turmoil with inflation on top.

Chart 1

Chart 2

Bitcoin has returned to its 'faux' safe haven, in the wake of the Federal Reserve's/Central Banks Tech sector/start up and Crypto bond/colletrized debt bailouts.  That started with Silicon Valley Bank and has ended up, so far, with the Swiss National Bank bailout out of global banking giant Credit Suisse, who have written down to zero $17 Billion worth of bonds.  Chart 1 shows how BTC has benefited by the underwrite of bond markets that are connected to the volatile crypto sector and the so called disruptive technologies to which crypto is a part of, with is no more or less of pure speculation.  But, millions are pouring into BTC as the Chart 1 show's, with the incredible collapse of the 10 and 2 YR bond yields, which has been the unattended effect of these bailouts and money printing, that in turn thrown the bond markets into disarray.  

It is the 2 YR yield which has moved down within 7 days at over .20% (biggest move since 1987), with a dramatic buy up of U.S. Treasuries since the bailout/s.  The paradox and confusion lies in the fact that inflation has become imbedded at 6% within the U.S. economy.  As the Fed's printing money and bailouts of the banking system is adding to an already bloated balance sheet at over $8 Trillion, the bond market is struggling to gauge either a recession or stagflation, with the later becoming more pronounced if Central Banks begin to pause or event cut rates.  Luck, as far as energy related inflation, has been on their side with milder winters for the Northern Hemisphere, stockpiling of natural gas and the Russian oil cap; including Bidens's release of oil from the U.S. strategic reserves.  This has shown up as a dip inflation, but not a trend down.  Pertaining to the possibility of a harsh and dry summer for the said region of the world.  Oil and gas (trailing electricity prices) could go bid again.

Chart 2 is Bond Volatility Index at 15 year highs since the 2008 credit crisis.   The key differences to then and now is that the magnitude problems from all sides, be it geopolitical issues with China and Russia ala a new Cold War, extreme weather events (climate change), imbedded inflation within the global economy and the massive debt piles that most countries have taken on to fund cheap money.

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