Bitcoin

The Fed's constrained policy options—trapped between inflation and fiscal sustainability—point to a structural shift in the global yield curve. This could ultimately undermine the US dollar's purchasing power, making Bitcoin an attractive hedge, but only after a period of heightened volatility and potential liquidity stress.

Pepperstone strategist Dilin Wu comments on the bond market being ahead of the Fed and warns that Fed Chairman Kevin Warsh has only bad options to address rising US bond servicing costs.