How does the 10yr tnx affect the price of digital currencies?

1 answers

• Lynn TanOct 27, 2020 · 5 years ago
  At BYDFi, we've observed that the 10-year Treasury yield (10yr tnx) can have an impact on the price of digital currencies. When the 10yr tnx rises, it often leads to a decrease in the value of digital currencies. This is because higher interest rates make traditional financial instruments more appealing, causing investors to shift their funds away from digital currencies. On the other hand, when the 10yr tnx falls, it can create a more favorable environment for digital currencies, as they become relatively more attractive compared to other investment options. However, it's important to remember that the relationship between the 10yr tnx and digital currencies is not the sole determinant of their prices. Other factors, such as market sentiment, regulatory developments, and technological advancements, also play significant roles in shaping the cryptocurrency market.
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