{"id":329261,"date":"2021-08-23T19:31:44","date_gmt":"2021-08-23T16:31:44","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/bloomberg-strategist-explains-why-30-year-us-bonds-have-bullish-implications-for-bitcoin\/"},"modified":"2021-08-23T19:31:44","modified_gmt":"2021-08-23T16:31:44","slug":"bloomberg-strategist-explains-why-30-year-us-bonds-have-bullish-implications-for-bitcoin","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/bloomberg-strategist-explains-why-30-year-us-bonds-have-bullish-implications-for-bitcoin\/","title":{"rendered":"# Bloomberg strategist explains why 30-year US bonds have &#8216;bullish implications&#8217; for Bitcoin"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a373b343fe45\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a373b343fe45\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/bloomberg-strategist-explains-why-30-year-us-bonds-have-bullish-implications-for-bitcoin\/#Bitcoin_to_reach_new_record_high\" >Bitcoin to reach new record high<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/bloomberg-strategist-explains-why-30-year-us-bonds-have-bullish-implications-for-bitcoin\/#Tapering_and_Jackson_Hole\" >Tapering and Jackson Hole<\/a><\/li><\/ul><\/nav><\/div>\n<p>&#8220;<strong># Bloomberg strategist explains why 30-year US bonds have &#8216;bullish implications&#8217; for Bitcoin <\/strong>&#8221;<\/p>\n<div class=\"post-content\" data-v-128018ef>Despite Bitcoin (BTC) slipping back below $50,000, more and more investors are likely to move their capital into Bitcoin\u00a0and gold markets in the second half of 2021 (H2), asserted to Mike McGlone on Aug. 23, the senior commodity strategist at Bloomberg Intelligence.<\/p>\n<p>The financial analyst cited the consistently lower yields offered by the 30-year US Treasury note behind his upside analogy. He noted that if its rate of return persists below 2%, it could enhance the price discovery stage for Bitcoin while posing a competitive advantage for traditional safe-haven assets like gold.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\"><a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/hashtag\/Bitcoin?src=hash&amp;ref_src=twsrc%5Etfw\">#Bitcoin<\/a>, <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/hashtag\/Gold?src=hash&amp;ref_src=twsrc%5Etfw\">#Gold<\/a> &amp; Long <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/hashtag\/Bonds?src=hash&amp;ref_src=twsrc%5Etfw\">#Bonds<\/a>: Three Amigos for 2H <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">App<\/a>reciation? The U.S. Treasury 30-year yield sustaining below 2% has bullish implications for gold and Bitcoin. Unlike the stock market, the old analog store-of-value and new digital version share substantial corrections.. <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/t.co\/UYanE4sPSb\">pic.twitter.com\/UYanE4sPSb<\/a><\/p>\n<p>\u2014 Mike McGlone (@mikemcglone11) <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/mikemcglone11\/status\/1429759296271785986?ref_src=twsrc%5Etfw\">August 23, 2021<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>&#8220;Unlike the stock market, the old analog store-of-value and new digital version share substantial corrections,&#8221; McGlone <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/mikemcglone11\/status\/1429759296271785986\">added<\/a>, referring to the little reversion in the S&amp;P 500 index in the first half of 2021 (H1) that increases its potential to correct lower in the H2.<\/p>\n<p>In turn, it arranges new capital for other markets with extreme upside potential, such as Bitcoin.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2021-08\/81ec1cd0-fcb0-4301-85ab-4f11c6ae876c.jpeg\" alt=\"\" title=\"\"><figcaption style=\"text-align: center;\"><em>Bitcoin, gold, and US bonds index versus S&amp;P 500 total return index. Source: Bloomberg Intelligence<\/em><\/figcaption><\/figure>\n<p>&#8220;The S&amp;P 500 up or down 10% in 2H offers a simple binomial model,&#8221; <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.bloomberg.com\/professional\/blog\/bitcoin-30000-long-bond-2-may-define-2h-bi-crypto-assets\/\">wrote<\/a>\u00a0the Bloomberg analyst in a research note in July. <\/p>\n<blockquote><p>&#8220;If up, it would be about 3x the annual norm since 1928 and buoy the Bloomberg Galaxy Crypto Index above the 1H gain of about 80%. If down, bond yields would likely follow and Bitcoin may be a primary beneficiary.&#8221;<\/p><\/blockquote>\n<h2><span class=\"ez-toc-section\" id=\"Bitcoin_to_reach_new_record_high\"><\/span>Bitcoin to reach new record high<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The Federal Reserve&#8217;s unprecedented interference in the bond market after the March 2020&#8217;s market crash drove rates down. Institutional investors that ideally look for 5% annual yields from the bond market to curb inflationary pressures now grappled with short-term bonds, some of them offering yields below zero. <\/p>\n<p>Meanwhile, yields on the longer-dated Treasury also fell to record lows. That forced investors to look for alternatives in the riskiest parts of the financial markets\u2014higher-returning, non-debt investments like Bitcoin.<\/p>\n<p>&#8220;It was the breach of [the 2%] threshold in 2020 that preceded the risk-off swoon and laid the foundation for Bitcoin\u2019s move toward new highs this year,&#8221; the Bloomberg research noted.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2021-08\/5ab3427a-c8df-4448-9c05-29ba49bdc9a3.png\" alt=\"\" title=\"\"><figcaption style=\"text-align: center;\"><em>30-year US Treasury yield versus Bitcoin price. Source: TradingView.com<\/em><\/figcaption><\/figure>\n<h2><span class=\"ez-toc-section\" id=\"Tapering_and_Jackson_Hole\"><\/span>Tapering and Jackson Hole<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>McGlone&#8217;s statements on bonds and Bitcoin correlation come as Jerome Powell, the chairman of Federal Reserve, prepares to deliver a speech at the Jackson Hole summit this week, typically one of the most influential economic events.<\/p>\n<p>The Fed&#8217;s efforts to reduce its $120 billion per month bond-buying policy expects to be a dominant theme during the (virtual) Jackson Hole meeting. Investors will watch Powell&#8217;s words for any clues on how and when the U.S. central bank would begin its tapering program.<\/p>\n<p>In their July 27-28 meeting, Fed officials agreed to start unwinding their bond-buying policy over a sanguine\u00a0outlook for economic growth and the jobs market. <\/p>\n<p>Nonetheless, the 30-year Treasury yield remained lower after the <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">news<\/a>, with <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.wsj.com\/articles\/bond-market-signals-confidence-in-fed-policy-outlook-11629365401\">reports surfacing<\/a> that investors were still expecting economic downturns owing to\u00a0the spread of the Covid-19 Delta variant.<\/p>\n<p>&#8220;Many clients have not particularly understood how rates markets have moved, and that has brought in a degree of caution you wouldn\u2019t normally see,&#8221; Guneet Dhingra, head of US interest rate strategy at Morgan Stanley, <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.ft.com\/content\/3c3e439d-2929-4746-9938-34e096100aa7\">told the Financial Times<\/a>.<\/p>\n<p><strong><em>Related:\u00a0Bitcoin bullish cross on weekly chart paints $225K BTC price target if history repeats<\/em><\/strong><\/p>\n<p>After the Fed outlook on Aug. 18, Bitcoin price rose by more than 14% to reach their three-month high of $50,784.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2021-08\/2824a6e4-0d03-446f-8799-44493d390e04.png\" alt=\"\" title=\"\"><figcaption style=\"text-align: center;\"><em>Bitcoin daily price chart. Source: TradingView.com<\/em><\/figcaption><\/figure>\n<p>The BTC\/USD exchange rate slipped below $50,000 on Monday on profit-taking sentiment. At its lowest, the pair&#8217;s bid was $49,369.<\/p>\n<p class=\"post-content__disclaimer\">The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.\n<\/p>\n<p><template data-name=\"subscription_form\" data-type=\"markets_outlook\"><\/template><\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more News articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/bloomberg-strategist-explains-why-30-year-us-bonds-have-bullish-implications-for-bitcoin\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;# Bloomberg strategist explains why 30-year US bonds have &#8216;bullish implications&#8217; for Bitcoin &#8221; Despite Bitcoin (BTC) slipping back below $50,000, more and more investors are likely to move their capital into Bitcoin\u00a0and gold markets in the second half of 2021 (H2), asserted to Mike McGlone on Aug. 23, the senior commodity strategist at Bloomberg&#8230;<\/p>\n","protected":false},"author":1,"featured_media":329262,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/images\/1200_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjEtMDgvNDk5YWVjYTktOWVlMy00NGY3LWE5ZTEtNTZiM2JlMzg5NDRlLmpwZw==.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[79806,74862,81951,74937,75147,74982,74939,78261,74336,1545,5069,70550,71835,67874],"class_list":["post-329261","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-analysis","tag-bitcoin","tag-bitcoin-analysis","tag-bitcoin-price","tag-bloomberg","tag-btc-markets","tag-market-analysis","tag-tech-analysis","tag-bonds","tag-coronavirus","tag-economy","tag-federal-reserve","tag-gold","tag-united-states"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/329261","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=329261"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/329261\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/329262"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=329261"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=329261"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=329261"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}