What are the historical correlations between the US 2-year treasury yield and the prices of major cryptocurrencies?

3 answers

• Nov 24, 2021 · 3 years ago
  Historically, there has been a negative correlation between the US 2-year treasury yield and the prices of major cryptocurrencies. When treasury yields increase, investors tend to shift their investments towards traditional assets like bonds, leading to a decrease in demand for cryptocurrencies and a potential drop in their prices. On the other hand, when treasury yields decrease, investors may seek higher returns in riskier assets like cryptocurrencies, which can drive up their prices.
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• Nov 24, 2021 · 3 years ago
  The relationship between the US 2-year treasury yield and the prices of major cryptocurrencies is complex and can be influenced by various factors. While there has been a historical negative correlation, it is important to note that correlation does not imply causation. Other factors such as market sentiment, regulatory developments, and macroeconomic conditions can also impact cryptocurrency prices. Therefore, it is essential to consider multiple factors when analyzing the relationship between treasury yields and cryptocurrency prices.
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• Nov 24, 2021 · 3 years ago
  According to a study conducted by BYDFi, there is evidence of a negative correlation between the US 2-year treasury yield and the prices of major cryptocurrencies. However, it is worth noting that correlation does not necessarily indicate causation. The relationship between treasury yields and cryptocurrency prices can be influenced by a multitude of factors, including market dynamics, investor sentiment, and global economic conditions. It is important to conduct further research and analysis to fully understand the dynamics of this relationship.
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