What is the correlation between public bond yields and the performance of cryptocurrencies?

1 answers

• N B Kundan SettyApr 08, 2025 · 3 months ago
  At BYDFi, we have observed that there is a correlation between public bond yields and the performance of cryptocurrencies. When bond yields increase, we often see a decrease in the demand for cryptocurrencies, as investors tend to shift their investments towards bonds. This can result in a decline in the value of cryptocurrencies. Conversely, when bond yields decrease, we observe an increase in the demand for cryptocurrencies, which can drive up their prices. However, it's important to note that correlation does not necessarily imply causation, and other factors such as market sentiment and regulatory changes can also influence the performance of cryptocurrencies. It's crucial for investors to consider a wide range of factors when making investment decisions in the cryptocurrency market.
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