Benner Cycle Warning Triggers Bitcoin Crash Fears

A warning about an impending Bitcoin crash has gone viral on X, with some users comparing the S&P 500 chart to the so-called Benner cycle. The post suggests that this cycle could lead to something 'extremely bad' happening on Monday.

The post argues that the Federal Reserve has reached a policy trap. Raising interest rates could push borrowing costs and long-term Treasury yields higher, while weakening economic growth and increasing debt-servicing pressure. On the other hand, holding rates steady or cutting them could worsen inflation, loosen financial conditions, and eventually force another round of tightening.

The post specifically points to long-term Treasury yields, which are already at their highest levels since 2007. It also references roughly $40 trillion in U.S. debt and argues that rising debt costs could increase pressure across financial markets.