Real Vision: Finance & Investing Bitcoin Hits New Highs, U.S. Debt Surge, and Global PMI Contraction: PALvatar Market Recap, May 22 2025
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May 22, 2025 Discover the thrilling rise of Bitcoin, which recently soared past $110,000, fueled by institutional interest and a weakening dollar. Delve into the implications of the U.S. federal deficit and surging Treasury yields, as well as Japan's unexpected machinery orders. The latest PMI data reveals troubling economic contractions in Germany and Japan, raising alarm bells globally. Stay informed and gain insights on crucial market movements and trends.
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Bitcoin's Historic Surge
- Bitcoin surged past its all-time high, nearing $110,000 driven by institutional demand and a weakening dollar.
- Today marks Bitcoin Pizza Day, highlighting the massive gain from 10,000 BTC once spent on two pizzas to over a billion dollars in value.
US Debt Surge Warning
- The US federal deficit could rise by over $1.3 trillion in the next decade due to a bill cutting taxes and reducing social spending.
- This would increase the debt-to-GDP ratio from 98% to 125%, with Treasury yields rising and auctions poorly received.
Japan's Mixed Economic Signals
- Japan's 40-year bond yield hit an all-time high of 3.66%, while machinery orders surged 13% month-on-month.
- Despite strong growth in machinery, the manufacturing PMI remained below 50, signaling contraction for 11 consecutive months.