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Are there any correlations between the US 10-year Treasury yield and the prices of cryptocurrencies?

avatarJake ReyesDec 27, 2021 · 3 years ago3 answers

Is there a relationship between the US 10-year Treasury yield and the prices of cryptocurrencies? How does the yield of US Treasury bonds affect the value of cryptocurrencies?

Are there any correlations between the US 10-year Treasury yield and the prices of cryptocurrencies?

3 answers

  • avatarDec 27, 2021 · 3 years ago
    Yes, there can be correlations between the US 10-year Treasury yield and the prices of cryptocurrencies. When the yield on Treasury bonds increases, it can lead to a decrease in the value of cryptocurrencies. This is because higher yields on safe investments like Treasury bonds can attract investors away from riskier assets like cryptocurrencies. On the other hand, when Treasury yields decrease, it can lead to an increase in the value of cryptocurrencies as investors seek higher returns in riskier assets.
  • avatarDec 27, 2021 · 3 years ago
    Absolutely! The US 10-year Treasury yield and the prices of cryptocurrencies can definitely be correlated. When Treasury yields rise, it can signal expectations of higher interest rates and potentially slower economic growth. This can lead to a decrease in the demand for cryptocurrencies as investors may prefer safer investments. Conversely, when Treasury yields fall, it can indicate lower interest rates and potentially stimulate economic growth, which can be positive for cryptocurrencies.
  • avatarDec 27, 2021 · 3 years ago
    Well, it's not a direct relationship, but there can be some indirect correlations between the US 10-year Treasury yield and the prices of cryptocurrencies. Changes in Treasury yields can reflect changes in market sentiment and risk appetite. When Treasury yields rise, it may indicate a shift towards safer investments, which can negatively impact the prices of cryptocurrencies. However, it's important to note that there are many other factors that influence the prices of cryptocurrencies, so Treasury yields alone may not be the sole determinant.