2026-01-08 12:21:21

The incoming administration just flagged a major shift in fiscal priorities. A substantial boost to defense outlays through 2027 is being justified against the backdrop of escalating geopolitical tensions. What does this mean for markets?

Historically, surging government spending on defense creates ripple effects across multiple asset classes. Higher fiscal spending can pressure bond yields, influence currency valuations, and reshape capital allocation strategies globally. For those tracking macro trends, this signals policymakers perceive elevated uncertainty ahead—something that historically drives demand for alternative stores of value.

The timing matters too. As markets digest shifting monetary and fiscal trajectories, investors should consider how these policy shifts might reshape the macro environment we're trading into. Defense spending cycles often correlate with inflation expectations and real rates—both critical factors influencing risk appetite across both traditional and digital asset markets.

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ImpermanentPhobia

· 01-11 10:43

Here comes another wave of military spending hype, just hearing it makes you feel inflation is about to take off. Defense spending is skyrocketing... now the funds need to be recalculated, does BTC look a bit more attractive now? Damn, inflation is coming again, is it really this time? Feels like every time they say "geopolitical tension," then the crypto prices start to do some tricks. Massive flooding of defense spending, small investors' purchasing power will depreciate again. This logic... military stocks rise, bond markets play with fire, and we get caught in the middle. Good grief, openly advertising alternative assets? It's both fiscal spending and real rates, ultimately it all comes down to money losing value. Wake up, everyone.

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CoffeeNFTrader

· 01-11 10:37

Spending is about to surge again... The crypto world is about to celebrate --- I really don't understand, it's both geopolitics and defense... Who will pay when inflation explodes --- Wait, is this a covert way of bullish on BTC... Got it --- Before 2027, everyone needs to buckle up, macro is really not that simple --- Are bond yields about to rise? Then I need to recalculate --- Basically, money is going to be poured into defense, retail investors should hold their positions --- Interest rate expectations are about to reverse again... Is this for real this time --- Inflation is spiraling, only gold and cryptocurrencies are stable --- Why does it feel like they keep hinting at us to buy altcoins as a store of value... It's way too obvious

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FundingMartyr

· 01-10 15:37

Defense spending plus one, bonds are going to suffer... Can this wave really push up Bitcoin? --- Geopolitical tensions lead to money being spent on military, and in the end, it's us retail investors who pay the price. --- Wait, if inflation expectations rise, both traditional assets and the crypto market will be caught in the crossfire. --- Another policy shift, plus new trading logic, it's enough to make your head spin... --- Instead of guessing policies, why not ask where the coin prices will soar before 2027? --- Is it possible that actual exchange rate changes have a bigger impact than defense spending itself? --- The more chaotic things get, the more opportunities there are. These days, with more policy uncertainties, there are also more ways to make money. --- Is the US dollar about to be exploited again? We might need to consider rebalancing our portfolio.

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RetailTherapist

· 01-10 04:08

Oh my gosh, the military spending is about to explode again. The crypto market should take off now, right? --- Defense expenditure soaring = inflation expectations taking off. My BTC is dancing. --- Wait, is this an advertisement for alternative assets? Why do I feel like I've been "tricked"? --- Geopolitical tensions heating up → military spending ↑ → bond yields being squeezed → still need to be optimistic about digital assets. I get the logical chain. --- NGL, once this policy comes out, traditional assets will need to be reshuffled. We coin holders might be in for some good news. --- Defense spending will surge wildly before 2027. Can the crypto prices keep up with inflation next year? I'm a bit anxious. --- It's always "geopolitical tension" + "fiscal shift." How many times have we heard this? Might as well just say "printing money." --- So, simply put, the policy has changed, money will flow elsewhere, and our liquidity might be diverted.

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MetaLord420

· 01-08 12:43

Here it comes again, defense spending surging... Is this really going to war this time? --- Wait, bond yields are about to explode, I'm a bit nervous about my stablecoin positions. --- NGTL this macro shift, Bitcoin usually outperforms, that's how history has played out. --- When geopolitical tensions tighten, money floods into the military industry, then inflation kicks in. We're being cut like leeks, an old script. --- Before 2027, there's plenty of time for speculation. Are risk assets ready to take off? --- In fact, this is bearish for altcoins. I really don't understand why some people are still bullish. --- Defense + inflation expectations = crypto market frenzy, that's how I see it... Shouldn't be wrong, right? --- The question is, will this wave of spending materialize, or is it just another empty promise...

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PortfolioAlert

· 01-08 12:34

Military stocks are about to take off, and this is really not just hype --- Defense spending is increasing significantly... still a bit worried that bond yields will be drained --- Upgrading of geopolitical tensions = bullish for the crypto market? Old trick, waiting to be cut --- Continuing to pour money until 2027, inflation expectations are definitely rising, the opportunity to short bonds has arrived --- What does this fiscal shift mean for gold and BTC? Feels like funds should be moving out --- Another war is coming, is the market afraid? Anyway, capital is not afraid, still harvesting the chives --- As real rates rise, both traditional assets and digital assets will need to be re-priced --- This old path of Defense spending, in the end, inflation pays the bill, the ordinary people suffer the most --- Rising bond yields = crypto winter is coming? I don't believe it, just a shift in the battleground --- With policy directions changing so much, macro traders will be happy these two years

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PebbleHander

· 01-08 12:33

Defense spending is soaring, the crypto world should be excited... Wait, hold on, can we really buy the dip this time? Oh my sisters, with the geopolitical situation so tense, it feels like inflation is about to take off again Treasury yields are about to explode, where the funds are flowing to... I dare not even imagine This whole defense spending thing, in the end, will probably flow into digital assets, right? It's the old trick, politicians always use this move As the market digests this wave, how long can our dip-buying window stay open... In anxiety, holding positions, but afraid to add more Is this a signal on the eve of inflation, or is a real war about to break out? Real yields are about to collapse, is BTC stable?

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quiet_lurker

· 01-08 12:29

Spiking defense spending... time to buy crypto again? --- Geopolitical tensions escalate, bond yields are moving, can the crypto prices stay unaffected? I saw this coming a long time ago. --- NGL, every time there's a fiscal policy adjustment, it's the same script: bonds → inflation expectations → risk assets take turns rising. Can't this time be different? --- Defense cycle before 2027? Uh... that means inflation isn't over yet, the game of real rates still has to continue. --- Wait, are we talking about alternative assets becoming popular? Then it's definitely time to stock up on something. --- It's the same logic again... policy uncertainty → capital reallocation → crypto riding the wave, always the same story. --- The macro environment is changing, but my wallet hasn't. Where's the problem? --- Bond yield pressure + defense spending, traditional markets might be cleaning out... Can the crypto world stay immune this time? --- No, why does it always take such tense situations to increase defense spending... --- After listening for so long, I just want to say: once the inflation spiral starts, it never ends.

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MidnightSeller

· 01-08 12:25

Military spending surges before 2027… This is going to be interesting, is the crypto world about to take off again? --- Really? More money printing? It was about time to stockpile coins. --- I'm tired of hearing "geopolitical tensions"—basically, they just want to flood the market with liquidity. --- Still daring to buy the dip? Let’s wait for the inflation data to come out... --- This is hilarious. Increased defense spending = rising inflation expectations = BTC should go up, right? --- Bond yields are about to soar, which is not good for us. --- It's always the same story—retail investors end up suffering in the end. --- Something's off. Funds are flowing into defensive sectors. Are traditional assets about to lead a wave out? --- The crypto world is about to get cut again. Let’s wait and see. --- "Geopolitical" is such a perfect excuse—basically, they just want to spend money.

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BearMarketSurvivor

· 01-08 12:22

Here comes the defensive spending again? Oh my, bond yields are about to take off... Can our crypto still be at ease? --- When defensive money flows in large amounts, inflation has to follow suit. BTC should sit tight now. --- Haha, it's the same story again. Every time geopolitical tensions rise, defensive spending skyrockets... Investors are starting to switch to alternatives. --- This rhythm... feels like real rates are about to move, and risk assets will be washed out. --- Will military stocks explode before 2027? Or will it happen on our side first... --- Market has already reacted to policy adjustments; the key is where inflation expectations are headed. --- Nah, no need to overthink. Money flowing into defensive assets is a signal of bearishness on US bonds, and everything else follows. --- The real question is whether the central bank will follow suit and raise interest rates... That’s the real killer.

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