Tuesday, Mar 28, 2023

The potential impact of the CFTC suit against Binance, and what the "safe haven" narrative means for the dollar vs bitcoin

“When you are wrestling for possession of a sword, the man with the handle always wins.” –Neal Stephenson  ||    

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MARKETS

The dollar as a safe haven?

With global unease rising, you would expect strong demand for “safe havens”. We are seeing this in US treasuries – since early March, IShares 1-3yr US Treasury index is up almost 1.8%, while 7-10yr and 20+yr treasury indices are up over 3.5%.

(chart via TradingView)

We are also seeing this in gold which is up more than 7% on the month.

(chart via TradingView)

So, why are we not seeing it in the most liquid “safe haven”, the dollar?