Fed’s Kashkari hints at liquidity support — Is $100K Bitcoin back on the table?
Neel Kashkari, President of the Minneapolis Federal Reserve, commented on rising Treasury yields, suggesting they reflect a changing investor sentiment regarding U.S. government debt. He emphasized the Fed's capability to provide liquidity if needed, which could potentially benefit Bitcoin as an alternative investment during economic uncertainty. Current Treasury yields at 4.5% are typical, but rising yields can lead to increased appeal for fixed-income investments. If these yields indicate deeper systemic issues, investors may flock to Bitcoin as a hedge. The Fed's liquidity strategies could involve purchasing long-term Treasuries to manage yield levels without undermining inflation control. Such actions might signal desperation and weaken confidence in the dollar, pushing investors towards safe assets like Bitcoin. Ultimately, as systemic risks increase, it may create conditions for Bitcoin to approach the psychological price mark of $100,000 again.
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