So inflation finally showed up in the consumer price index this week. And it came in hot, with year-over-year inflation in the U.S. clocking in at 5.4%, well beyond the Federal Reserve’s 2% target. It also marks a 13-year high (FYI – that was 2008, not exactly a great economic year). The kicker? Professional investors didn’t seem to care.
The 10-year Treasury bond yield, which is the benchmark for setting the borrowing costs of mortgage rates and corporate debt in America, initially fell. Expectations of higher inflation and economic growth tend to boost, not dampen, government-issued bond yields. While the 10-year eventually ticked upwards, the initial reaction was surprising.
With the markets in mind, I wanted to use this week’s newsletter to talk about the supposed lack of institutional interest in bitcoin these days. (Hint: it’s apparent that it’s not lacking.) I also wanted to outline why I think the industry is positioned to see another burst of institutional interest for cryptocurrencies as a result of Circle’s upcoming public listing in Q4 2021.
