Henry Paulson warns of the collapse of the agreement: what effect will this have on Bitcoin?

In the latest bond news, get started Henry Paulsonwho led the US financial system during the fall of 2008 as Secretary of the Treasury, Warning The US debt of $35 trillion could cause the Treasury bond market to collapse, calling for an emergency plan to be prepared before the crisis.

These shocks are delivered to crypto through a direct channel: reckless trading in the bond market leads to a rapid decline in the dollar, and historically, the lack of dollar supply punishes riskier assets before the safe issue of Bitcoin.

The 30-year Treasury yield has already exceeded 5%, a limit that was last breached in October 2023 during a period of rising inflation, and the market has not seen the best since the Great Recession. That’s not the only warning sign, but it takes a lot of weight from someone like Paulson.

Bond News: How do market shocks get to crypto and which stocks get hurt first?

The question here is not whether Paulson is right about the weakness of the Treasury market, but whether crypto will sell as a safe haven or a risk when the crisis collapses, and history provides a clear answer, at least in the short term.

Uncontrolled bond sales push the dollar higher as investors ditch bonds and demand cash. This change affects the loan history first. And the crypto markets, where Open contracts on derivative platforms are on the risecarrying power that turns heavy as the dollar rises.

What happened in April 2025 has shown this way clearly; When bond yields jumped amid tax fears, crypto didn’t deviate from safety, but fell along with stocks, contradicting the “digital gold” narrative and confirming its connection to risk factors.

Paulson worries that the demand for bonds could fall suddenly and without warning in a non-linear shock rather than a gradual movement in yields. These non-linear disturbances are what drive successive liquefaction waves. A break in the 10-year yield above 5% and a quick run would be a guarantee worth watching.

Bitcoin as a safe haven or a victim of risks: What does the bond pressure mean for crypto prices?

The idea seems logical; If the bonds start to lose their integrity, the liquid money will have to go elsewhere, and Bitcoin, with its stable and non-independent nature, becomes the obvious solution, which is why the big players are sticking to this idea.

But time is a trap that many fall into.

When there is a real shock in the bond market, the first step is not to move but to panic, and in this case, everything is sold, including Bitcoin, as happened in March 2020 when the currency fell hard before rising again.

And right now, it’s stopped Ethereum and other major altcoins are at a technical levelwhich makes them more vulnerable to economic shocks. Ethereum doesn’t have the “hard currency” issues that Bitcoin does, and it would probably be vulnerable in the event of a major credit crisis.

Jamie Dimon’s similar warning, that investor demand for higher yields could push up housing prices without Fed regulation, reinforces Paulson’s view. Despite Besant’s rejection of these warnings, stock markets are already pricing in risks that the current Chancellor of the Exchequer does not fully acknowledge.

A note Henry Paulson warns of the collapse of the agreement: what effect will this have on Bitcoin? appeared for the first time Cryptonews Arabic.

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