Analysis: The decline in the OAS indicator shows a short-term bullish outlook for Bitcoin and Nasdaq

ChainCatcher news, according to CoinDesk, as a key indicator of economic sentiment and corporate credit health, the ICE/BofA US High Yield Index Option-Adjusted Spread (OAS) has retreated from recent highs, supporting a rebound in risk appetite for cryptocurrencies and the stock market, but analysts believe this relief may be short-lived.

The OAS metric measures the average yield spread between dollar-denominated high-yield corporate bonds and U.S. Treasuries, adjusted for embedded options in the bonds. This metric is widely regarded as a barometer of credit risk, with widening spreads typically indicating increased investor concerns about corporate defaults or economic weakness.

Currently, the OAS has decreased from a six-month high of 3.4% earlier this month to 3.2%, a decline that supports the resurgence of Bitcoin (BTC) and the Nasdaq. Previously, the spread had surged by 100 basis points over four weeks to mid-March, as concerns over economic recession triggered by Trump's tariff policies caused Bitcoin to drop below $80,000 and the Nasdaq to suffer significant losses.

However, analysts expect that as the negative effects of Trump's tariff policies gradually become apparent, the OAS spread will widen further in the coming weeks. Hans Mikkelsen, Managing Director of Credit Strategy at TD Securities, stated in a recent client report, "We believe this is just the beginning, and things will get worse before they get better."

From a technical analysis perspective, the OAS has broken through a three-year downtrend line, which is a highly cautionary signal for investors in risk assets.