Jim Bianco: Bond Market Had Already Signaled Fed Rate Hikes, Bitcoin ETF Construction Missed the Point

Bitcoin Magazine released a video interview in which Jim Bianco, founder of Bianco Research, stated that before the Federal Reserve's first rate hike in nearly three years, the bond market had actually signaled it two years earlier. He noted that during the Fed's previous rate-cutting cycle, the 10-year Treasury yield rose from 3.7% to 5%, marking the first time in over 50 years that the Fed cut rates while long-end yields climbed. In a discussion with Grace Remington and Sean Hagan, Bianco also addressed that the Fed's decision on October 28 (a week before the midterm elections) was more significant than Wall Street expected. He pushed back on the "debasement trade" narrative and discussed what Bitcoin needs to demonstrate, including development activity and DeFi Summer. He argued that Bitcoin ETF construction missed the point and claimed that Tether has effectively become the circulating currency in Venezuela and Afghanistan. Additionally, Bianco touched on stablecoins and the GENIUS Act, real Treasury demand, and the post-pandemic economy, while criticizing Fed Chair Powell. He believes there are multiple ongoing wars and a "safe haven" logic at play, and cited the "Fourth Turning" theory to analyze the current macro cycle.