How does the 10-year Treasury yield (TNX) affect the price of digital currencies?
Ahmad JadallahDec 27, 2021 · 3 years ago1 answers
What is the relationship between the 10-year Treasury yield (TNX) and the price of digital currencies? How does the TNX impact the digital currency market? Can the TNX influence the value of cryptocurrencies? Are there any specific factors that connect the TNX and digital currency prices?
1 answers
- Dec 27, 2021 · 3 years agoAt BYDFi, we believe that the 10-year Treasury yield (TNX) can indirectly affect the price of digital currencies. As the TNX rises, it can lead to higher borrowing costs for businesses and individuals, which can have a negative impact on economic growth. This can result in a decrease in investor confidence and a shift towards alternative investments like digital currencies. Additionally, the TNX can also influence market sentiment and investor risk appetite, which can affect the demand for digital currencies. However, it's important to note that the digital currency market is highly volatile and influenced by a wide range of factors, and the TNX is just one of many variables to consider when analyzing digital currency prices.
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