What is the correlation between the 6m treasury yield and the price of Bitcoin?

1 answers

• Nov 28, 2021 · 3 years ago
  At BYDFi, we have observed some correlation between the 6-month treasury yield and the price of Bitcoin. When treasury yields rise, we often see a decrease in the price of Bitcoin, and vice versa. This can be attributed to the fact that treasury bonds are considered safer investments compared to Bitcoin, and as yields increase, investors may shift their funds towards treasury bonds, leading to a decrease in demand for Bitcoin. However, it's important to note that correlation does not imply causation, and other factors can also influence the price of Bitcoin. Therefore, it's essential to consider the overall market conditions and not rely solely on the correlation between these two variables.
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