Bloomberg crypto analyst Jamie Coutts says that Bitcoin (BTC) is flashing an unexpected bullish signal as US long bonds continue their collapse.
Coutts says on the social media platform X that Bloomberg’s trend model has suddenly signaled bullishness despite a deterioration of the macro landscape.
Last week, yields on 30-year Treasuries went above the 5% mark for the first time since 2007. According to Bank of America, US long bonds are in their greatest bear market of all time.
However, Coutts says the king crypto is only one resistance away from igniting a new bull cycle in defiance of the macro backdrop.
“Isn’t this interesting…our Bitcoin trend model pops off a bullish signal at a time when (United States Treasuries) are cratering.
For technical analysis buffs, we know trend models are great unless we are in the chop of a sideways trading range, which we have been in since Q2. So for now, this signal is noise.
However, the $31,000 resistance remains a crystal clear threshold that, once broken, would ignite the bull cycle.”
Coutts recently said that in the face of US dollar debasement, Bitcoin has been a better performer than bonds, and predicted that more investors would end up shifting capital from bond portfolios into BTC in the future.
“And if allocators want to outpace monetary debasement, over most timeframes, bonds are not the place to be.
Substitute any money aggregate for the denominator and you get the same results. Here I am using US M2.”Don't Miss a Beat – Subscribe to get email alerts delivered directly to your inbox
Check Price Action
Follow us on Twitter, Facebook and Telegram
Surf The Daily Hodl Mix
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Featured Image: Shutterstock/Marut Laijaroen