The Bulls Are Back: Treasury Intervention, SEC Crypto Rules & Trump Says Hyperliquid
Episode publishedPodcast: 0xResearch0xResearch
Transcript preview
Preview only
Nothing said on Xerox Research is a recommendation to buy or sell securities or tokens. GM, GM, and welcome back to another episode of Xerox Research. Joined today by Mark and Nick from the Blockworks Research team. After a huge week in markets across the board, we saw treasury teasing up to trillion dollars in purchases of long duration treasury securities. SEC came out with regulation crypto assets, some new proposed rulemaking for capital formation in crypto, and Trump name dropped Hyperliquid at a press conference. Across the board, we saw the biggest one week candle in Bitcoin's dollar va
I'm feeling pretty good, pretty pretty euphoric at the moment, which is I I think a hard position to be in, but looking at the assets that I really believe in and starting to build a watch list.
Yeah. I mean, how could I not be happy half the week like this? Like you said, we've had, like, a bunch of catalysts at once, and we're breaking records already. You know, I've been slowly DCA ing during this this downturn. So I think my only point of contention is that this this big move happened a bit sooner than I thought it would. I didn't get to fully allocate, but I am not complaining about that. The higher, the better. So, yeah, let's go.
Perhaps we could stop start at kind of top down and do our little macro LARPing, with what the treasury has been doing or teasing over the past week where they came out and said, we're first gonna buy back maybe 2,000,000,000 in, thirty year treasury bonds. They upped that to 4,000,000,000. And then yesterday, you got your little leak Sources say the treasury is considering buying back up to a trillion, in thirty year treasury bonds. And if we take a look at what's been going on in the bond market, here's your thirty year treasury yield, which in recent weeks, it poked fresh highs. And of cour
Yeah, for sure. I mean, if we just pull up the the yield curve, I think people are asking is this regular treasury business or if this is, you know, the treasury maybe doing its own version of yield curve control and honestly I probably think it's a bit of both. So, know, if you look at the ten years, the ten years is around four four four seventy and the thirty is around five twenty. Right? So that's a fifty fifty basis points spread in between the two of them and the twenty year, you would think should be half between 10 and the 30, so about 4.95, but the the the twenty years at at five twen
Yeah. So do you read this as as stimulus or quantitative easing? And what does this have to do with our Bitcoin bags?
It's a very that's a funny question, you know, because like it's not quantitative easing. We're not printing more money and, you know, it's you know, but, you know, money is getting moved from from the treasury's balance sheet. It's being repurposed. It's it's it's just moving around treasuries and cash. Right? There's no extra, you know, treasuries being printed out of thin air. But it's, you know, it does seem to have some kind of effect on what like does for risk assets. And I don't know if, you know, maybe this was the intended effect. You know, a lot of new risk assets are rising. We're t
Yeah. A lot of interesting forces at play. So like as, as the AI opportunity got so hot, the market at large, you'd say selling the long end of the treasury curve to instead buy US corporate bonds kinda funding to the data center build out. That's caused long end to rise, much, much more so than the treasury would like. Now they're now they're kind of stepping in. They haven't bought any yet, but they've guided to, you know, up up to a
Keep exploring with a free account.
A free account preserves the short preview. Upgrade to Pro for the full transcript and episode chat.
Go deeper with this episode
Generate a summary and deeper analysis from the existing transcript.