Bloomberg strategist: 5% US Treasury yields are a reason to sell bitcoin and gold
- —Fed raised rates by 25 bps to 3.75–4% on September 16
- —10-year US Treasury yields approached 5%
- —BCOM index to long bonds ratio at an extreme not seen since 1990
- —McGlone expects capital rotation out of bitcoin and gold into Treasuries
Why it matters: The case for capital flowing out of crypto into risk-free assets while Fed policy stays tight weighs on bitcoin as a risk asset.
Source: U.Today