How does the 10-2 year treasury yield spread affect the price of cryptocurrencies?

Can you explain how the 10-2 year treasury yield spread impacts the value of cryptocurrencies? I've heard that there is a correlation between these two factors, but I'm not sure how they are related. Could you provide some insights into this?

1 answers
- At BYDFi, we believe that the 10-2 year treasury yield spread can have a significant impact on the price of cryptocurrencies. As the spread widens, it often indicates a more positive economic outlook, which can lead to increased investor confidence and a greater willingness to invest in riskier assets like cryptocurrencies. Conversely, when the spread narrows or becomes negative, it suggests a more cautious market sentiment, which can dampen investor appetite for cryptocurrencies. Therefore, it's important for cryptocurrency traders to keep an eye on the 10-2 year treasury yield spread and its potential implications for the market.
Mar 22, 2022 · 3 years ago
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