US Treasuries Lure Investors Away from Bitcoin and Gold Amid Tightening Monetary Policy

Bloomberg Intelligence's senior macro strategist Mike McGlone has pointed out that investors may now have a reason to sell Bitcoin and gold. According to McGlone, the main beneficiary of capital flows will be U.S. Treasuries offering yields around 5%. This comes after the Federal Reserve raised its benchmark interest rate by another 25 basis points on September 16, 2026, to a range of 3.75%, 4%, with the yield on 10-year U.S. government bonds moving close to the psychological 5% level.

The current macroeconomic environment is an 'endgame' for risk assets, says McGlone, as the Fed continues to tighten financial conditions, sharply increasing the risks of a 'break' in the global economy and equity markets. When the U.S. government is prepared to pay a fixed 5% annual return in dollars on government-backed securities, the logic of holding alternative assets changes completely.

McGlone emphasizes that gold loses investment appeal because it does not generate coupon income and is guaranteed to lose out to the real yield offered by government bonds. Bitcoin, amid scarce liquidity, trades as a high-risk asset rather than a store of value, making it an unattractive option for investors.