Bitcoin Crash Warning Linked to Fed Policy and Yields

A warning about an impending Bitcoin crash is circulating on X, with some users pointing to Federal Reserve policy and long-term yields as potential triggers. The post suggests that the Fed has reached a policy trap, where raising interest rates could lead to slower economic growth and increased debt-servicing pressure, while holding rates steady or cutting them could worsen inflation.

The comparison is made with the S&P 500 chart and the so-called Benner cycle, which highlights the potential for a vicious cycle of higher rates leading to slower growth, and lower rates leading to renewed inflation pressure. Long-term Treasury yields are already at their highest levels since 2007, adding to concerns about rising debt costs.

The post also draws parallels with Japan's experience, suggesting that the Federal Reserve could face a similar policy dilemma in the future. However, it's worth noting that none of these claims establish that markets will crash on Monday, October 5.