As a seasoned crypto investor with a keen interest in market trends and economic indicators, I find the recent correlation between Bitcoin (BTC) and the 10-year Treasury yield intriguing. The negative readings of late have been striking, with the correlation dropping to minus 53 earlier this week.
As a crypto investor, I’ve noticed an intriguing development based on data from Barchart: the relationship between Bitcoin (BTC) and the 10-year Treasury yield has reached one of its most negatively correlated levels in the past 14 years.
Earlier this week, the correlation dropped to minus 53.
A Treasury yield is how much investors can earn when they purchase U.S. government obligations.
As a researcher studying bond markets, I’ve come across the consensus view that Treasury yields are projected to level off in the coming weeks and may even decrease slightly by the end of this year.
This year, the yield on the 10-year U.S. Treasury note experienced a significant drop as investors anticipated the Federal Reserve would implement several interest rate reductions. However, this trend reversed when robust economic data emerged and persistent inflation continued to rise.
As a researcher, I cannot definitively predict whether the Federal Reserve will implement two or only one interest rate reduction in 2023. There is also a plausible scenario where no rate cuts occur this year.
The Bitcoin price took a dive to hit $66,000 on Tuesday following the end of Bitcoin ETFs’ 19-day streak of inflows. Despite the substantial inflows we observed last week, Bitcoin struggled to break past the $72,000 resistance mark due to unexpectedly robust jobs data.
This Wednesday, the foremost cryptocurrency is predicted to display increased price fluctuations due to the imminent release of the consumer price index (CPI) report and the anticipated Federal Reserve interest rate announcement.
Lower borrowing costs would be beneficial for risk assets such as Bitcoin.
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2024-06-12 11:23