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@ameliah
The correlation between Bitcoin price and U.S. Treasury yields has been a topic of interest for investors. Historically, Bitcoin often exhibits an inverse relationship with yields, particularly the 10-year Treasury. When yields rise, signaling tighter monetary conditions or higher inflation expectations, Bitcoin prices tend to face downward pressure as investors favor safer assets. Conversely, declining yields, often linked to economic uncertainty or looser policy, can drive Bitcoin higher as a hedge against fiat devaluation. Recent data shows this inverse correlation strengthening, with Bitcoin dropping over 10% in a week as real yields hit a 2009 peak in 2023. However, short-term disruptions—like ETF speculation—can weaken this link. While not absolute, this dynamic highlights Bitcoin’s sensitivity to macroeconomic factors, positioning it as both a risk asset and a potential safe haven.
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