Inflation Linked Bonds Demand (Chainlink)

Measures the asset's sensitivity to inflation-linked US government bonds, captures the lead-lag relationship between the two assets.

Inflation Regime Signaling Mechanism

Rising demand for TIPS and similar instruments acts as a real-time referendum on institutional inflation expectations. Crypto markets may react to these signals with a lag as:

• Bond buyers represent institutional capital flows anticipating macro shifts
• Crypto's "digital gold" narrative gets repriced after traditional inflation hedges move

Policy Expectation Arbitrage

Front-end bond demand reflects expectations for:

• Fed put strikes (rate cut thresholds)
• Fiscal dominance dynamics impacting money supply
• Currency debasement trade entry/exit points

Crypto markets price these factors through optionality structures (e.g., Bitcoin's fixed supply narrative) with inherent time lag.

The data for "Inflation Linked Bonds Demand" is sourced from real-time/historical market feeds tracking US inflation-linked bonds (e.g., TIPS), with normalization applied to compare current demand levels against historical averages. Normalization ensures values reflect relative positioning rather than absolute metrics.