Bloomberg analyst says near-5% U.S. 10-year yield caps upside for gold, Bitcoin

Bloomberg senior analyst Mike McGlone said in a recent report that alternative assets such as gold and Bitcoin are facing strong upside resistance as the U.S. 10-year Treasury yield approaches 5%. The report said gold and Bitcoin rebounded from support levels of $4,000 and $60,000, respectively, but are unlikely to easily break above their previous record highs of $5,000 and $100,000. It added that the appeal of high-yield bonds offering returns near 5% is limiting capital flows into risk assets, given the speculative nature of alternative assets that do not generate interest income. McGlone also warned that while the zero-rate environment and extreme liquidity of 2020 created a buying opportunity for gold and Bitcoin, the current backdrop, with the 10-year yield up tenfold from its low at the time, could instead signal strong selling pressure for alternative assets.