Bitcoin Bulls Should Watch Interest Rates, Yield-Adjusted Ratios Suggest

Bitcoin’s recent rebound has revived talk of a new bull run, but yield-adjusted valuation gauges suggest the move may be less powerful than nominal prices imply. According to CoinDesk, the BTC/US10Y and Nasdaq/US10Y ratios have not exceeded their 2020-2021 peaks even as both assets hit record dollar highs, implying the macro top may have been reached in 2020-21. Fed rhetoric remains hawkish and oil prices have also firmed, with bitcoin’s bounce from $58,000 to $66,000 failing to stop its ratio versus WTI crude from falling.