Oversold Treasury Bonds Signal Potential Volatility Ahead for Crypto and Stocks, Analysts Warn
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U.S. Treasury bond prices look oversold, indicating potential for volatility in financial markets including crypto.
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Oversold bond prices have preceded major volatility events like 1987 crash, 1994 Tequila crisis, 1999 dot-com bubble, 2021 crypto crash.
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Falling bond prices and rising yields drain money from risk assets like stocks and crypto.
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Current oversold bond levels look similar to early 2021 before bitcoin rose to $60K then crashed back to $30K.
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Bitcoin and broader markets could soon see increased price turbulence according to Bank of America analysis.