Which cryptocurrencies are most affected by fluctuations in the 1yr treasury yield?

1 answers

• Dec 29, 2021 · 3 years ago
  At BYDFi, we have observed that the impact of fluctuations in the 1-year treasury yield on cryptocurrencies can be significant. When treasury yields rise, it often leads to a decrease in the demand for cryptocurrencies, especially for those with higher risk profiles. However, it's important to note that the impact can vary across different cryptocurrencies. Some cryptocurrencies, like stablecoins, may be less affected by these fluctuations as they are designed to maintain a stable value. On the other hand, more volatile cryptocurrencies may experience larger price swings in response to changes in the treasury yield. Therefore, it is crucial for investors to carefully assess the risk and potential impact of treasury yield fluctuations on specific cryptocurrencies before making investment decisions.
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