Bitcoin's Rebound May Be a 'Gift to Sell,' Bloomberg Warns

Bloomberg's Mike McGlone is sounding a warning for Bitcoin and other risk assets. He believes that the recent rebound in Bitcoin is a 'gift to sell,' citing the fact that the 30-year Treasury yield has hit its highest level since 2007.

The high bond yields create direct competition for Bitcoin and gold by offering substantial returns through government-backed securities, while also raising borrowing costs, reducing liquidity, and increasing the discount rate applied to long-duration assets. This makes it more difficult for non-yielding assets like Bitcoin to compete.

McGlone's warning extends beyond crypto, noting that US market capitalization has reached roughly 2.5 times GDP and 2.1 times publicly held debt, levels he calls multidecade extremes suggesting the stock market has become the economy. He also points out that the S&P 500's 260-day volatility reading is roughly half gold's equivalent, the lowest relative level since 2007.

The current price of Bitcoin is around $79,700, but McGlone believes this bounce may be an opportunity to sell, rather than a sign of strength. The RSI shows a bearish divergence with price making higher highs while momentum fails to confirm, and the MACD histogram is shrinking after its second peak.