The White House just dropped its new National Security Strategy, and it’s not your usual geopolitical memo — it’s a global fiscal expansion blueprint with major implications for Bitcoin, Gold, and Bond Yields.
🔥 Key Highlights
✅ Defense spending explosion — NATO pushed from 2% → 5% of GDP
✅ Japan & South Korea pressured to increase military budgets
✅ More U.S. investment in the Indo-Pacific
✅ “Era of mass migration is over” → sticky wages → higher inflation risk
✅ More borrowing = higher yields = tougher path for rate cuts
📈 Market Impact
Bond Yields:
More global borrowing = heavier bond supply = yields stay elevated.
→ Makes aggressive rate cuts unlikely.
Inflation:
Higher wages + global spending = persistent inflation pressure.
Gold:
Already up 60% YTD despite high yields — still benefiting from safe-haven demand.
Bitcoin:
Promoted as “digital gold,” but lagging — down ~5% YTD.
→ Macro tailwinds should benefit BTC long-term, but it hasn’t reacted yet.
🧭 Trader Insight
If this strategy sticks, markets may face:
• Higher global yields for longer
• Limited downside for inflation
• Momentum shifting to hard assets
• Bitcoin’s “digital gold” narrative possibly reviving if macro risks escalate
Short-term:
⚠️ BTC may stay muted due to high yields
Mid/long-term:
🌕 BTC benefits if inflation stays elevated and rate cuts slow down
🔍 Why This Matters to Crypto
The strategy essentially signals:
➡️ More spending
➡️ More debt
➡️ More inflation risk
➡️ Less room for central banks to ease
This environment historically favors Gold — and eventually Bitcoin if demand returns.
