The Bond Market Is Screaming… And Bitcoin May Be The Winner
Speakers
John Gillen
— Co-Host, Milk Road Macro
Summary
The video explains why bond yields are surging due to inflation and loss of confidence in government debt, driven by the Strait of Hormuz closure and hot CPI/PPI data. It anticipates a policy response involving liquidity injections that historically benefit Bitcoin and crypto as risk assets.
- Bond yields are rising as bond vigilantes demand more compensation for holding government debt.
- Oil prices have pushed above $100 due to the ongoing closure of the Strait of Hormuz.
- CPI and PPI inflation data came in hotter than expected, reinforcing supply-side pressures.
- Policymakers are expected to intervene to stabilize bond markets, likely through liquidity measures.
- Bitcoin and crypto historically benefit from liquidity injections as a release valve.
- The timeline for policy action is uncertain but expected before midterm elections.
- Changes to bank balance sheet rules could provide another channel for liquidity.
Trade Ideas
Oil likely to go higher.
Oil prices are rising due to the ongoing closure of the Strait of Hormuz, causing a global energy and food crisis, supply shortages, and inflation spikes. CPI and PPI data came in hotter than expected, and oil is likely to keep going higher because the conflict persists and speculation of resolution keeps failing.
Bitcoin benefits from liquidity injection.
Governments will likely have to inject massive liquidity to manage the bond market crisis, as the current fiscal path is unsustainable and the risk of inaction is unacceptable. Historically, Bitcoin and crypto act as the excess liquidity release valve and have performed very well in such environments, making them key beneficiaries of the expected policy response.
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This Milk Road Macro video, published May 31, 2026, features John Gillen discussing WTI, BTC. 2 trade ideas extracted by AI with direction and confidence scoring.
Speakers: John Gillen · Tickers: WTI, BTC