BlockBeats News: On April 6th, Coindesk analyst Omkar Godbole stated that Nasdaq has fallen 11% since Trump announced the implementation of equivalent tariffs on Wednesday, but Bitcoin prices have remained stable, consistently above $80000. Bitcoin's resilience is seen as a sign of its gradual evolution into a macro hedge tool.
However, the sharp downward fluctuation in the short term cannot be ruled out, especially because of the sharp fluctuation of treasury bond prices, "treasury bond market basis trading" is facing greater risks. Basis trading involves highly leveraged hedge funds. It is reported that the leverage ratio of these funds is as high as 50 times, and they use the small price difference between treasury bond bond futures and securities for arbitrage. In mid March 2020, as the COVID-19 threatened the global economy, the explosive growth of basis trading led to the "cash rush" in the market, and investors sold almost all their assets in exchange for dollar liquidity. On March 12, 2020, Bitcoin plummeted almost 40%.
Therefore, the market needs to pay attention to the yield of treasury bond. The increased volatility of treasury bond yields may lead to a market crash similar to that during the COVID-19 epidemic, leading to widespread asset selling, including Bitcoin, to obtain cash.
