Bloomberg Analyst Warns of Increased Downside Pressure on BTC

Bloomberg senior analyst Mike McGlone stated that BTC may face increased downside pressure as commodity prices remain historically high compared to long-dated U.S. Treasuries while the Federal Reserve raises rates. The ratio of the Bloomberg Commodity Spot Index (BCOM) to the U.S. Long Treasury Total Return Index has remained at current levels for over a month, a first since 1990. In previous similar situations, rate cuts followed, but currently, the Fed and other major central banks are increasing rates. With the U.S. 10-year Treasury yield exceeding 5% and rising energy prices, the risk of shocks to the global economy and stock market has increased, suggesting further downside pressure on risk assets, including BTC.

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