Bloomberg: Commodities and rates may add downside pressure on BTC, risk assets

Bloomberg senior analyst Mike McGlone said in a recent report that downside pressure on BTC could increase as commodity prices remain historically elevated relative to long-dated U.S. Treasuries while the Fed is raising rates. McGlone said the ratio of the Bloomberg Commodity Spot Index, or BCOM, to the U.S. Long Treasury Total Return Index has stayed at current levels for more than a month for the first time since 1990. In similar extreme periods in the past, rate cuts accompanied the move, but this time the Fed and other major central banks are instead raising rates. With the U.S. 10-year Treasury yield above 5% and energy prices also surging, the report said the risk of shocks to the global economy and stock market has risen, adding that further downside pressure could build on risk assets including BTC.