Bond markets are revealing concerns about U.S. fiscal stability, potentially benefiting assets like Bitcoin (BTC) and gold. The recent surge in real yields on Treasury inflation-protected securities (TIPS) indicates that investors are increasingly demanding compensation for long-term fiscal uncertainties. This situation hints at possible inflationary measures being employed to alleviate burdens of rising national debt, projected to climb significantly over the next decade. Analysts are observing that the typical correlation between foreign exchange and bond yields is breaking down, highlighting a lack of trust in U.S. fiscal policy. This shift is causing investors to explore safer assets, such as BTC and gold, which historically perform well in inflationary climates. Although volatility in the Treasury market could lead to across-the-board selling, the current environment supports a bullish outlook for BTC and gold due to the ongoing fiscal challenges. Analysts stress the urgency of repairing fiscal policies, emphasizing a potential trend towards financial repression, which further positions BTC and gold as favorable investments.

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