According to The Kobeissi Letter, China's strategic shift in holdings between gold and US Treasuries highlights an ongoing trend as the trade war escalates. This divergence is crucial for traders, especially in the cryptocurrency market, as it signals potential impacts on global economic stability and investment strategies. As China's gold purchases increase, investors might consider diversifying into cryptocurrencies as a hedge against market volatility. Staying informed on the movements of these assets is essential for traders to capitalize on market shifts. Follow @KobeissiLetter for real-time analysis on these developments.

According to The Kobeissi Letter, China's gold and US Treasury holdings are moving in opposite directions as trade tensions escalate. This trend highlights the growing importance of monitoring gold prices for trading decisions. The shift in China's asset allocation could impact global markets, emphasizing the need for traders to stay updated with real-time analysis provided by sources like The Kobeissi Letter.

According to The Kobeissi Letter, the US Treasury saw nearly $7 trillion in gross issuances within just 3 months during 2023, culminating in a total of $23 trillion for the year. This trend continues in 2024, with mass issuances persisting as investors shift away from bonds. Such a robust issuance scale could potentially drive investors toward alternative assets like cryptocurrencies, as traditional bond appeal dwindles.

According to @KobeissiLetter, the issuance of US Treasuries reached an astonishing $23 trillion in 2023, with nearly $7 trillion issued in just the first three months. This substantial increase in bond supply has led to diminishing investor interest in traditional bonds, potentially driving capital towards alternative assets like cryptocurrencies. Such a shift could influence trading strategies as investors seek higher yields and diversification away from bonds.

According to The Kobeissi Letter, the persistent inflation and US deficit spending have led to the US interest expense on national debt reaching a record $1.2 trillion over the last 12 months. This situation necessitates mass issuances of US Treasuries, which in turn causes bond prices to fall as the market becomes saturated with bonds. Traders should monitor bond market movements as they can impact broader financial markets.

According to Farside Investors, the Bitcoin futures basis rate has significantly dropped from approximately 10% when Bitcoin was priced over $100k. Currently, the potential earnings on Bitcoin have decreased to around 6%, which does not justify the additional risk when compared to the 4.3% yield offered by US treasuries. As a result, it may not be prudent to open new basis positions, although maintaining existing ones might still be considered.

According to Edward Dowd, the 30 and 10 Year US Treasuries, commonly referred to as long bonds, are indicating potential future actions by the Federal Reserve. Traders should monitor these movements as they may signal upcoming monetary policy adjustments (source: Edward Dowd via Twitter).

According to The Kobeissi Letter, foreign countries' share of US sovereign debt is currently around 33%, marking the lowest point in 25 years. This significant reduction, down by approximately 22 percentage points since the 2008 Financial Crisis, indicates that foreigners are actively selling US Treasuries. This trend is contributing to the rise in gold prices and the decline in US bond prices, highlighting a shift in investment preferences that traders should monitor closely.

According to The Kobeissi Letter, foreign countries' share of US sovereign debt has decreased to approximately 33%, the lowest in 25 years, prompting a rise in gold prices and a fall in US bond prices. This percentage reflects a 22-point drop since the 2008 Financial Crisis, as foreigners continue to sell US Treasuries.

According to @KobeissiLetter, foreign holdings of US Treasuries experienced a significant decline of $49.7 billion in December 2024, marking the largest drop since March 2021. This follows a $30.0 billion reduction in November, indicating a continued trend of foreign investors divesting from US federal debt. This consecutive selling trend could impact USD liquidity and influence Treasury yields, which are crucial for traders monitoring interest rate movements.

According to @KobeissiLetter, China is actively selling US Treasuries and increasing its gold purchases due to current economic conditions, including interest rate instability, inflation, and a $1.8 trillion US deficit. This strategic move highlights gold's status as a global safe haven asset.

According to The Kobeissi Letter, China is reducing its holdings in US Treasuries and increasing its gold reserves due to the current economic environment characterized by interest rate instability, inflation, and a rising $1.8 trillion annual US deficit. This shift towards gold highlights its status as a global safe haven asset.

According to André Dragosch, PhD (@Andre_Dragosch), if US Treasuries are no longer the de facto safe-haven asset, traders should expect significant yield curve steepening as investors avoid long-term Treasuries. This could prompt the Federal Reserve to engage in Yield Curve Control to manage long-term interest rates. Such developments are critical for traders as they indicate shifts in investor sentiment and potential policy interventions that could affect bond and equity markets. Source: André Dragosch on Twitter.

According to The Kobeissi Letter, President Trump suggested that DOGE may have detected fraud in US treasuries, implying a potential reduction in perceived national debt. This statement raises questions about the possible integration of blockchain technology in monitoring government spending. Such developments could influence investor sentiment towards cryptocurrencies, particularly DOGE, as a tool for transparency in financial audits.