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tldr; The US Federal Reserve's new Bank Term Funding Program (BTFP) also stands for 'Buy The Fucking Pivot'. BTFP is Yield Curve Control (YCC) repackaged in a new, shiny, more palatable format. It is a very clever way to accomplish unlimited buying of government bonds, without actually having to buy them. BTFP essentially cashed checks of the government, which dutifully bought interest rates in order to keep interest rates low. *This summary is auto generated by a bot and not meant to replace reading the original article. As always, DYOR.*
tldr; The US Federal Reserve's new Bank Term Funding Program (BTFP) also stands for 'Buy The Fucking Pivot'. BTFP is Yield Curve Control (YCC) repackaged in a new, shiny, more palatable format. It is a very clever way to accomplish unlimited buying of government bonds, without actually having to buy them. BTFP essentially cashed checks of the government, which dutifully bought interest rates in order to keep interest rates low. *This summary is auto generated by a bot and not meant to replace reading the original article. As always, DYOR. Get more of today's trending news [here](https://coinfeeds.substack.com).*
Bitcoin prices climbed higher today, surpassing $17,000 after the Bank of Japan raised the cap on yields paid by long-term government bonds, a move that many have described as being sudden and unexpected. The world’s most prominent digital currency reached $17,045.90 earlier today, according to CoinDesk data. At this point, it had climbed roughly 4.7% after reaching an intraday low of $16,288 yesterday evening, additional CoinDesk figures showed. Following this notable increase, the digital currency pulled back somewhat, trading close to $16,900 at the time of this writing. [Ed note: Investing in cryptocoins or tokens is highly speculative and the market is largely unregulated. Anyone considering it should be prepared to lose their entire investment.] BOJ Announcement Surprises Markets The BOJ shocked markets recently when Governor Haruhiko Kuroda announced that the financial institution was raising the cap on 10-year government bonds to 50 basis points above or below the zero percent target. Previously, the target range allowed for the yield to move 25 basis points in either direction. “Today’s step is aimed at improving market functions, thereby helping enhance the effect of our monetary easing,” Kuroda stated. “It’s therefore not an interest rate hike.” Japan’s central bank has been using an approach called yield curve control (YCC), which involves purchasing and selling bonds in order to keep their yields close to a specific target level. To keep yields down, the financial institution commits to buying bonds at a target price, which in turn corresponds with the target yield. Alternatively, if a central bank wants to keep these yields from decreasing too much, it could pledge to sell bonds at a target price. Certain markets reacted strongly to this development, with the U.S. dollar falling more than 4% against the Japanese yen, according to Google Finance. The Nikkei 225, a stock index containing blue-chip Japanese stocks, also moved lower, declining over 2% following the announcement, additional Google Finance data reveals. The recent weakness in the U.S. dollar may have proved bullish for bitcoin, as strength in the greenback has been described as providing bearish headwinds for the world’s most prominent digital currency.
Thanks for this article. Tracking bonds closely and they're getting out of hand. There will need to be YCC in the near future, otherwise we'll go to hell.
Sure, could be. Some CBs already starting with YCC and I'm sure others will follow eventually. Could be an indication.
tldr; The world’s major central banks have begun to backslide on their promises to fight inflation, and the next pandemic — the Yield Curve Control (YCC) virus — is quickly spreading. Politicians have refocused their talent for misdirection on getting their constituents invested in the war for “Russian Reunification” or of ‘Russian Aggression’, depending on which side of the iron curtain you reside. The situation is putting a strain on the global economy as it is. *This summary is auto generated by a bot and not meant to replace reading the original article. As always, DYOR.*
You're right that usage of BTC in circular economies is crucial for its survival, but people won't use it until it becomes the convenient thing to do. It's much more likely to happen from the bottom up The upcoming years the likelyhood of countries in South America and Africa following el Salvadors suit is likely. Those are the first dominoes of adoption to fall and that's when adoption becomes more of an inevitability, countries with weak currencies (there will be more and more of them) only have to plug themselves into this open network of hard currency backed by multiple circular economies instead of using their own weak currency or a centrally controlled CBDC from another nation with arbitrary rate hikes and mass easing policies crushing their economies. When multiple countries economies are plugged into BTC and/or major fiat currencies resort to YCC it becomes an inevitability that capital surplus countries start replacing bad fiat denominated debt with BTC (and probably gold) Then it is over for fiat. First slowly, then all at once, the seeds have already been sown. Nonetheless, pushing for adoption already in your way will do good for people to already get familiar with BTC. Go ahead and do the good work sir, I know I will.
Depends on if other CBs will follow BoE. Either we get mother of all YCC eg. QE, or we go full on bust
Neither gold or BTC are "hedges against inflation" no such magical asset exists except for the actual products that are inflating, magically made up monetary premiums aren't going to put bread on the table, liquidity does. Gold and BTC are actually currency alternatives, hedges against the current monetary system imploding and central banks failing. This would happen when it becomes clear that the dollar is dead, for example when the Fed resorts to YCC, which would happen when capital surplus countries stop saving in dollar denominated debt. At the moment there is 0 liquidity in the markets due to the FEDs actions, banks were scared shitless to spend anything at the top of a gargantuan asset bubble so most newly printed money ended up in reverse repo (literally, just look at the reverse repo balance sheet, its insane), now dollar is king, just momentarily until they inevitably have to resort back to easing. BTC in itself was a highly leveraged asset that simply imploded the moment liquidity was drawn from the markets and the speculative money premium left, nothing new here, but it sure got people on the wrong foot regarding the logic behind it and they label it as a failure. People simply have to wait until the fed gives its sign to start buying again or to DCA both assets for the long term, yet they try to overthink it. TLDR inflation irl, deflation in markets. Real assets good until we party again.
I don't know what unprecedented pace looks like and I hope I will never know. Just hoping for some YCC asap.
Crypto was partially born out of ZIRP, NIRP and YCC policies arising from the 2008 crisis. Furthermore, being an asset producing no cashflow, as interest rises, the cost of opportunity of holding crypto Increases disproportionally to other assets.
Watching the bond market nervously for the past few weeks. Hoping for some YCC here. Don't like the pace of movement.
Well no, not really, its potential change in reserve status is measured by how capital account surplus countries start changing how they save their assets. Petrodollar is nothing but a myth and people using the dollar to exchange oil with is a consequence of it's liquidity and strenght, not the other way around. Regarding BTC itself, to keep it short, when you see a headline which puts YCC and the fed in the same sentence, you run for the exits and get a shit load of gold AND some btc. No Euro, no Renminbi (lol), gold and BTC.
"He noted that ongoing geopolitical tensions are further exacerbating the already high inflation rates. At some point, however, inflation will reach its peak, and central banks will have no other choice but to resort to yield curve control (YCC), a tool employed to prevent bankruptcy. This, according to Hayes, will be the tipping point for Bitcoin." “YCC is the end game. When it is finally implicitly or explicitly declared, it’s game over for the value of the USD vs. gold and more importantly Bitcoin. YCC is how we get to $1 million Bitcoin and $10,000 to $20,000 gold.”
tldr; Ex-BitMEX CEO Arthur Hayes has predicted that Bitcoin will cost $1 million by 2030. The price will come as a result of "doom loop" in Western financial policy, notably yield curve control (YCC), as a tool to prevent bankruptcy, he said. Hayes also predicted that gold will see up to $20,000 per ounce by the end of the decade. *This summary is auto generated by a bot and not meant to replace reading the original article. As always, DYOR.*
YCC...yield curve control...is my biggest fear cuz it could potentially keep system afloat for a few more decades. It would grow gdp and make debts more affordable with inflation (not sure how well ya know the term)...it could potentially keep fiat viable, I hate it...
Again, those balls on u, daaaaamn 
Balls. That's what shit like this takes. An abundance of balls, the ballsiest of balls. Massively oversized balls like this, coupled with the research shown and a steady hand can make for a nice financial future. 
And what about the cryptoYuan??? Maybe they are preparing the market for it? Does someone knows WHAT is the official chinesse crypto? I bought some YCC, but now I am not sure it is the correct crypto 🥴
I believe China's coin is named Yuan chain coin (YCC)
Will the Corporate Bond Bubble Burst at 2 pm Tomorrow? This is the question I can’t stop asking myself. By implementing some alphabet soup of acronyms tomorrow, I think the probability is actually pretty high. Here is my call: The Fed is going to extend the Supplementary Leverage Ratio Rule to banks, which is due to expire on March 31st. This will unleash another source of demand for treasuries to try to cap treasury yields from rising. Remember that banks bought 17% of treasury issuance last year. Banks have lots of cash on their balance sheets and utilizing that as a source of demand for treasuries may counterbalance the lack of foreign buyers. In the chart below, Andreas Steno Larsen of Nordea posits that if the Fed doesn’t implement the SLR extension, another $700 billion of treasuries will need to be sold by those banks. That’s not likely to happen, unless Jay is feeling frisky and wants free markets again. If we get this type of MMT/YCC, the US dollar would likely fall while oil would spike higher as the money printer goes “Brrrr.” The investment-grade corporate bond bubble may burst as inflation goes into overdrive. This would single handedly make the 60:40 portfolio obsolete, and bitcoin would consequently moon again. Be long volatility! Most of the leading economic indicators are telling us that will be the case
YCC can stabilize the bond market because the Fed keeps the yield fixed. This allows borrowing and investments to normalize. It’s a bit different than quantitative easing where the govt just buys a dollar amount of bonds.
I'm only just learning about YCC. Appearantly very bad for the fiat currency and everyone holding it.
I don't think the government and the fed (same thing nowadays), at least for the time being, will let interest rates continue to go up. They will have to implement YCC probably through bond purchases. JPow and co. will do anything they can to prevent a crash because it will tarnish their ego and reputation greatly - and rising interest rates will cause massive defaults in this highly overlevered economy, so YCC is really the only play they have for now, I think, thus further inflating this already big bubble.
Just look at the ten year treasury- some folks think YCC started already, unannounced Definitely moon :) Only question is if we get a deflationary crunch before or not- Ala Lehman
I think BTC will absolutely kill after yield curve control is implemented. Despite what everyone thinks we haven't really seen consumer inflation yet. But once YCC is implemented even the manipulated CPI numbers won't be able to hide the centeral banks plan to punish savers to bailout boomers.
YCC the place to be..? Integrating technology from the major blocks, including ETH. Could be a worth speculative dabble... From their website: 1. Main Chain is highly stable like the bitcoin network, no virtual machine, high concurrency, TPS will reach 10,000 in the future. 2. Major Hash logo of parachain will upload to main chain, ensuring immutability. 3. Adoptions of smart contract and virtual machine on parachain, which will have no impact on main chain’s security and stability. 4. Interoperability between parachain and the main chain is highly efficient and stable, making sure that main chain is authoritative and parachains are diverse. 5. Innovative consensus mechanism DPOS + BFT, elective block creation and validation nodes, similar to jury system, ensuring a fair and efficient consensus. 6. Integrate Ethereum smart contract with Yuan chain seamlessly, C2C trading with bitcoin, ethereum and others Has anyone else stumbled across this coin?
Sorry that I won't join your well-mannered discussion here, but I'm just curious and did some research. According to [coinmarketcap](https://coinmarketcap.com/currencies/yuan-chain-coin/), there is a supply of zero. I read that a coin called e-yuan is already tested in some regions of China, so I don't know if YCC is really Chinas first or only digital coin, and if there are different ones out to see which works best, there is a big likelihood that this project fails. Even your suggestion huobi states that "Given that YCC is a blockchain asset with high risk, please be sure to carefully study the crypto info before investing. " And therefore, one has to pay 60$ in fees for moving and swapping 150$ worth of a coin even the exchange (!!!) is warning you of, let alone by doing fraud about the residence? Well, maybe some people here like to take risks. I'll pass, but thanks for sharing.