Italy just locked in its cheapest borrowing rate in 12 months at today's bond auction. The driving force? Market expectations that the Federal Reserve might ease rates sooner than anticipated. When traditional finance sniffs out rate cuts, risk appetite shifts across all asset classes—from sovereign debt to digital assets. It's a reminder that macro winds still matter, even in the crypto space.

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.

11 Likes

Reward
11
7
Repost
Share

Comment

0/400

IntrovertMetaverse

· 21h ago

The borrowing costs in Italy have fallen, not because of the news from the Fed... Wait, what does this have to do with the crypto world?

View OriginalReply0

SnapshotBot

· 11-30 04:21

Once the expectation of the Federal Reserve's interest rate cut is out, both TradFi and the crypto world are on the rise, this is the power of the macro.

View OriginalReply0

GmGnSleeper

· 11-27 20:05

Macroeconomic factors do indeed influence coin prices, but can we really predict the Fed's actions... or is it the same old story?

View OriginalReply0

MonkeySeeMonkeyDo

· 11-27 19:56

Once the expectation of interest rate cuts comes out, funds start to scramble, this is the link between TradFi and the crypto world.

View OriginalReply0

BlockchainDecoder

· 11-27 19:46

According to research, the transmission mechanism of this wave of macro expectation changes is worth in-depth analysis. The decline in Italian bond yields essentially reflects the repricing of global liquidity expectations—technically, this is a typical signaling of the "risk asset revaluation cycle" starting. Data shows that historically, whenever the Fed releases dovish signals, the correlation coefficient of the encryption market tends to rise significantly within 2-4 weeks. Interestingly, at the Jackson Hole meeting in 2021, researchers pointed out that this cross-asset class linkage has obvious lagging characteristics. It is worth noting that many people overlook a detail: the suppression of sovereign bond yields precisely indicates that the market's expectation of economic recession is heating up. Overall, this may not necessarily be a signal of "risk appetite rising"; rather, it could be a manifestation of "risk repricing."

View OriginalReply0

notSatoshi1971

· 11-27 19:41

As soon as the expectation of the Federal Reserve's interest rate cut was announced, both TradFi and the crypto world started to dance along, which is quite interesting.

View OriginalReply0

SatoshiSherpa

· 11-27 19:36

When the Fed eases up, the whole world follows... Italy's borrowing costs hit a new low in a year, and the crypto world benefits from it.

View OriginalReply0

Trending TopicsView More
#JoinGrowthPointsDrawToWiniPhone17
219.05K Popularity
#DecemberMarketOutlook
8.74K Popularity
#GIGGLEAndPIPPINSurge
1.17K Popularity
#LINKETFToLaunch
1.35K Popularity
#SharingMy100xToken
1.89K Popularity

Hot Gate FunView More

1
GPANDARed Panda
MC:$3.3KHolders:1
0.00%
2
GCOINGATE COIN
MC:$3.3KHolders:1
0.00%
3
110489196155I am $1 rich
MC:$3.33KHolders:1
0.00%
4
IBVMIBVM
MC:$3.5KHolders:5
0.89%
5
GMGM
MC:$3.34KHolders:1
0.00%

Sitemap