In this episode, Nik Bhatia sits down with TBL Research Associate Demian Schott to break down Bitcoin’s strong price action despite signs of macroeconomic slowdown. They explore how falling bond volatility, shifting interest rate expectations, and the Fed’s potential rate cuts are boosting risk assets through the TBL Liquidity lens. Nik explains how market certainty affects dealer activity, why lower yields matter for Bitcoin and stocks, and what the two-year Treasury yield is signaling about future Fed policy. The conversation also touches on global trade, Eurodollar flows, and the political dynamics influencing inflation and long-term interest rates.

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Nik Bhatia's Twitter: https://twitter.com/timevalueofbtc

Creative Director Matthew Ball's Twitter: https://twitter.com/matthewrball

Researcher Demian Schatt's Twitter: https://x.com/demianschatt

Chapters:

00:00:00 Bitcoin Performance Amidst Economic Slowdown  

00:05:37 Understanding Interest Rate Risk and Duration

00:11:06 Understanding Bond Volatility and Bitcoin Performance  

00:16:38 Impact of Bond Market Movements on Stocks

00:22:10 Impact of Treasury Market on U.S. Economic Policy

00:27:35 Economic Slowdown and Rate Cuts Ahead

00:32:37 Strategies for Stabilizing Long-Term Inflation  

00:38:39 Historical Context of Trump's Political Influence

00:44:34 Observing Economic Predictions: Inflation and Stock Market Impacts

The Bitcoin Layer and its guests do not provide investment advice.