What is the correlation between the 10-year breakeven rate and cryptocurrency prices?

1 answers

• Dec 25, 2021 · 3 years ago
  At BYDFi, we have observed a positive correlation between the 10-year breakeven rate and cryptocurrency prices. As inflation expectations increase, investors tend to allocate more of their portfolio to cryptocurrencies as a hedge against inflation. This increased demand can drive up cryptocurrency prices. However, it's important to note that the correlation may not always be strong or consistent, as cryptocurrency prices are also influenced by other factors such as market sentiment and regulatory developments. Therefore, it's crucial to consider a holistic approach when analyzing the relationship between the breakeven rate and cryptocurrency prices.
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