Bitcoin Warning Circulates on X: Fed Policy Trap Looms
A concerning Bitcoin warning is circulating on X, comparing the S&P 500 chart to the so-called Benner cycle. The post suggests that something bad could happen on Monday, citing the Federal Reserve's policy trap. The analyst argues that raising interest rates could push borrowing costs and long-term Treasury yields higher, weakening economic growth and increasing debt-servicing pressure.
The post specifically points to long-term Treasury yields, which are at their highest levels since 2007, and the roughly $40 trillion in U.S. debt. It also references the comparison with Japan, suggesting that the Federal Reserve could eventually face a similar policy dilemma.
The warning mentions that tighter liquidity could trigger forced selling across stocks, bonds, silver, and Bitcoin, leading to a chain reaction of higher yields, tighter liquidity, falling risk assets, and eventually forced selling.
The Bitcoin crash warning remains a forecast circulating on X, based on data that isn't a confirmed guarantee that a crash will occur on Monday, October 5.