BTC Market Structure 🇺🇸

🚨 TRUMP & US JUST DODGED A MASSIVE CATASTROPHIC EVENT And this could have completely crashed the economy. Yesterday, Trump announced that no Greenland-linked tariffs would be imposed. This looks like a normal decision, but here is what was happening behind the scenes: - Denmark and Sweden pension funds were dumping T-bills - Deutsche Bank warned of full-scale selling of US assets by the EU - US bond yields were spiking due to fear and uncertainty Now you might be wondering how big the selling pressure from the EU could have been. As of now, EU holdings of US assets are: - $6 trillion in US stocks - $2 trillion in US T-bills - $2 trillion in US corporate bonds - $200+ billion in US agency bonds Collectively, EU holdings of US assets exceed $10 trillion, which is higher than the rest of the world combined. But why would they sell US assets? The reason is simple. Everyone knows Trump cares about markets more than anything else. Every time the stock market has panicked, the US has moved toward a trade deal. This happened with global tariffs, China tariffs, and now it has happened again. Trump also does not want to create more uncertainty, as that would push bond yields even higher. Since Q3 2024, the Fed has cut rates by 150 bps, yet bond yields have not come down. The reason is persistent inflation concerns, tariff uncertainty, and geopolitical tensions. This is why TACO happened much faster this time, and it will likely happen even faster in the future.