Record Levels of Negative-Yielding Debt Strengthen Case for Bitcoin: Analysts

Record Levels of Negative-Yielding Debt Strengthen Case for Bitcoin: Analysts


Bitcoin’s long-term bullish case may have got another boost as the global stockpile of negative-yielding bonds hits a new high.

The value of the Global Negative-Yielding Debt Index from Bloomberg and Barclays is now at a record level of $17.05 trillion, surpassing the previous lifetime high of $17.04 trillion reached in 2019. The figure has more than doubled in the past eight months.

A negative-yielding bond offers less money at maturity than the original buying price. The sharp rise in volume is the result of the massive liquidity-boosting bond purchases by the U.S. Federal Reserve and other major central banks to contain the economic fallout from the coronavirus pandemic.

The towering stockpile of bonds yielding negative returns is said to be an incentive for investors and corporations to pour money into inflation-resistant assets such as bitcoin. That’s not only because these bonds yield losses on maturity, but also because the money received

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