US Bonds Suck Liquidity Out of Crypto, Bloomberg Expert Says

It has been just revealed the fact that the US bonds are sucking the liquidity out of crypto, according to the latest reports coming from Bloomberg. Check out the details about this interesting matter below.

According to the new reports, 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.

The online publication the Daily Hodl notes the fact that 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 stablecoin,” the notes said.

Melker revealed the following:

“I also look at stablecoins. It’s a bit of a melting asset at the moment. Stablecoins were great when you had zero interest rates and you had negative interest rates in much of the rest of the world. But now when the US government is giving you 5%.”

He also made sure to say the fact that people always need to be reminded of when they point out that fiat currencies decline over time. “Yes, they do. But they do pay you interest,” he concluded.

An analyst who nailed the 2018 bear market bottom for Bitcoin (BTC) believes that the crypto king’s correction is not yet over.

Pseudonymous crypto strategist Bluntz said recently, according to the latest reports coming from the online publication the Daily Hodl, that he expects Bitcoin to go on a quick bounce before resuming its downtrend. Check out our previous article in order to learn more details.