Bloomberg analyst warns 5% U.S. 10-year yield may reduce Bitcoin appeal

Bloomberg senior analyst Mike McGlone stated that Bitcoin's investment appeal could diminish if the U.S. 10-year Treasury yield rises to approximately 5% while stock market valuations remain high. McGlone noted a significant shift in the rate and Bitcoin price dynamics since 2021. In 2021, the U.S. 10-year yield was around 0.5% and Bitcoin was below 10000 dollars; currently, both the yield and Bitcoin's price are about ten times higher, indicating potential changes in investment flows. He highlighted that the year-end ratio of U.S. stock market capitalization to public debt has decreased to about 1.2 times in 2018 and 2022, coinciding with a 70% drop in Bitcoin's value. The current ratio is approximately 2.1 times. McGlone suggested that a gradual decline in stock prices could simultaneously pressure both Bitcoin and interest rates. Conversely, if stock prices and Treasury yields remain elevated, Bitcoin may lose its appeal as a speculative asset, competing with numerous other cryptocurrencies without offering cash flow or interest income.

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