Is Bitcoin decoupling from the economy? – Bitcoin Magazine

The following is a direct excerpt from Marty’s Bent Theme #1271: “Soaring fees, begging, and the relative strength of bitcoin. Sign up here to receive the newsletter.

Last week, we discussed the fact that credit default swap spreads for sovereign nations are completely breaking away from their historical averages. In that article, we highlighted that rapidly rising rates will start to have a material effect on interest payments on sovereign debt. Our friend Lawrence Lepard did some rough calculations on the exact impact this type of high rate environment will have on the amount of money the US government will owe its counterparties in interest payments if rates continue to rise. At this rate, interest payments will be about 3.5 times what they were in 2020. Of course, this won’t happen right away, as many of these Treasuries need to mature. However, if you look at the maturity schedule, a sizable number of these Treasuries are due in the next two years.

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