McGlone Sees Bitcoin Rebound as a Selling Opportunity Amid Rising Treasury Yields

Bloomberg Intelligence senior commodity strategist Mike McGlone has issued a warning about Bitcoin's recent rebound, calling it a 'gift to sell'. The strategist believes that the cryptocurrency has rolled over into a bear market, with negative consequences for other risk assets.

The 30-year Treasury yield has reached its highest level since 2007, which is seen as a headwind for Bitcoin and gold. High bond yields create direct competition for these assets by offering substantial returns through government-backed securities, while also raising borrowing costs and reducing liquidity.

McGlone extended his warning beyond crypto, noting that the US market capitalization has reached multidecade extremes compared to GDP and publicly held debt. The strategist also pointed out that the S&P 500's volatility reading is at a low level relative to gold, which he sees as another potential 'falling domino'.

Bitcoin's price has been volatile in recent days, with the cryptocurrency tagging $79,700 for the third time since last week's rally. The Relative Strength Index (RSI) shows a bearish divergence, while the MACD histogram is shrinking after its second peak.