Analysis: Bitcoin price stability faces potential “basis trade crash” risk

Odaily News Amid the turmoil in U.S. stocks caused by tariffs, Bitcoin has remained stable recently, making market participants excited about the potential of this cryptocurrency as a safe-haven asset, but the possibility of a sharp decline cannot be ruled out in the short term, especially the "U.S. bond market basis trading" is at risk due to the increased volatility of bond prices. Analysts believe that the potential outbreak of $1 trillion in U.S. Treasury bond basis trading may trigger a global cash rush, which may lead to the sale of all assets including Bitcoin. It is reported that a similar situation occurred in mid-March 2020, when the basis trading volume reached $500 billion. (CoinDesk)