Warning from Analyst as Bitcoin and the US Recover: This Start Will Get Worse! - Coin Bulletin

An important indicator of economic sensitivity, the “ICE/BofA US High Yield Index Option-Adjusted Spread (OAS)”, has pulled back from its recent peaks, but some analysts indicate that this relief may be short-lived.

ICE/BofA US High Yield Index Option-Adjusted Spread (OAS) is considered an important show of economic sentiment and corporate credit health.

OAS reflects investors' approach to risky assets by measuring the yield spread between high-yield corporate bonds and U.S. Treasury bonds. Recently, OAS has decreased from 3.4% to 3.2%, creating a market environment inclined to take on risk again.

This development has led to a rise in the value of risky assets like Bitcoin (BTC) and Nasdaq. However, experts predict that OAS could expand further and that this relief may be temporary. A prominent factor is that, with the adverse effects of the customs tariffs imposed by President Donald Trump becoming more pronounced, OAS could increase even more in the coming weeks.

The recent decline of OAS has triggered a short-term increase for Bitcoin and Nasdaq. However, analysts warn that this situation may not be permanent. Emerging economic conditions may hinder the continued demand for riskier assets.

Hans Mikkelsen, Managing Director of Credit Strategy at TD Securities, stated in his latest announcement, "We believe this is just the beginning and it will get worse before it gets better." This statement draws attention as an indication that concerns regarding risky assets in the market are increasing.