Pre Open US - Bitcoin 4 Aug 2023

Billionaire hedge fund manager Bill Ackman has surprised the financial world by shorting 30-year treasury bills and predicting yields to rise to 5.5%. He believes this move will act as a hedge against long-term rates' impact on stocks in an inflationary environment. However, not everyone agrees with his perspective, as some think his views may already be priced into the market.

The implications of this move on Bitcoin (BTC) and the broader crypto market are uncertain due to divergent opinions and the link between Bitcoin and bond yields. Here are some potential scenarios:

1. Yields Rise Significantly: If Ackman's prediction comes true and yields rise significantly, it may indicate a greater risk appetite among investors, potentially driving up Bitcoin's price. Additionally, Bitcoin could attract more investment as an inflation hedge.

2. Yields Remain Stable or Fall: Lower yields might lead investors to safer assets, potentially impacting Bitcoin's prices negatively. On the other hand, stable or falling yields could signal high liquidity conditions, potentially supporting Bitcoin's price.

3. Market Uncertainty Increases: If uncertainty rises due to fiscal policy concerns or rapid bond market repricing, Bitcoin might serve as a hedge and attract more investment. Technically, Bitcoin came back to its last support at the 30,000 level. A breakout of this level is necessary for any sustained short-term trend. The actual price action shows a rejection of the 30,000, and a possible comeback is more probable towards first the 28,800 support and followed by the 28,000.