Bitcoin’s Bounce Is a ‘Gift to Sell,’ Mike McGlone Warns as Bond Yields Flash 2007-Level Danger

Key Takeaways

• Mike McGlone says Bitcoin's rebound may be a selling opportunity within a broader bear market.

• The 30-year US Treasury yield recently reached 5.31%, its highest level since 2007.

• Elevated yields increase competition for Bitcoin and gold while tightening financial conditions.

Bitcoin's latest rebound may offer investors an opportunity to sell rather than signal the start of another sustained rally, according to Bloomberg Intelligence senior commodity strategist Mike McGlone.

McGlone warned that surging sovereign bond yields could end the historic advances in cryptocurrencies, precious metals and equities.

He pointed to the US 30-year Treasury yield reaching its highest level since 2007 as evidence that tighter financial conditions are threatening speculative assets.

"Welcome to volatility season," McGlone wrote. "Bitcoin's bounce may be a gift to sell."

His warning contrasts sharply with bullish arguments that Bitcoin has ended its bear market and is preparing to resume its role as the world's "fastest horse."

Thirty-Year Treasury Yield Reaches 5.31%

Recent official data supports McGlone's concerns about elevated borrowing costs.

The 30-year US Treasury yield reached 5.31% on Aug. 17 before easing to 5.23% on Aug. 20. The 10-year yield also remained elevated at 4.69%, while the 20-year stood at 5.20%, according to the Federal Reserve's latest H.15 release.