Bloomberg Macro Strategist Says US Bonds Sucking Liquidity Out of Crypto and Risk Assets – Here's His Outlook.
15 Jun 2023, 08:00
Bloomberg Macro Strategist Says US Bonds Sucking Liquidity Out of Crypto and Risk Assets – Here’s His Outlook
Bloomberg Intelligence’s senior macro strategist Mike McGlone says that one major factor has him bearish on the crypto markets.
In a new interview with crypto analyst Scott Melker, McGlone says that the high interest rates currently offered on US Treasury Bills (T-Bills) is sucking liquidity out of the crypto markets.
T-bills are short-term government debt obligations sold at a discount, the difference between the purchase price and the face value being accrued interest. Four-week to one-year T-Bills have recently been auctioned off with more than 5% interest. He also says one indicator of a liquidity drain is the declining market cap of stablecoins.