A significant increase in bond yields has been observed globally, with the US Treasury's 30-year yield breaking past 5.14% on Tuesday. This trend is expected to have far-reaching consequences, according to Shang Wu, a senior research analyst at BitMEX.
Wu believes that these rising yields signal a 'structural' shift in the market, which will ultimately benefit Bitcoin. As investors become increasingly wary of debasing assets, they are likely to flock to cryptocurrencies like Bitcoin, which cannot be inflated by central banks.
The $39 trillion US national debt has made it impossible for central banks to control inflation through rate hikes alone. Wu predicts that this will lead to a sovereign debt collapse or currency debasement, as governments attempt to disguise quantitative easing through other means.