Which cryptocurrencies are most affected by changes in the 10 year bond yields?

3 answers

• Taylor ConleyMay 09, 2021 · 4 years ago
  Changes in the 10 year bond yields can have a significant impact on the cryptocurrency market. Cryptocurrencies that are considered more speculative or risky tend to be more sensitive to these changes. This is because when bond yields rise, investors may shift their investments towards safer assets like bonds, causing a decrease in demand for cryptocurrencies. On the other hand, when bond yields decline, investors may be more willing to take on risk and invest in cryptocurrencies, leading to an increase in demand. Therefore, cryptocurrencies with higher volatility and lower market capitalization are generally more affected by changes in bond yields.
  657

  329
• Elizabeth TertseaSep 07, 2021 · 4 years ago
  When bond yields rise, cryptocurrencies like Bitcoin and Ethereum, which are considered more established and have a larger market capitalization, tend to be less affected compared to smaller, less established cryptocurrencies. This is because Bitcoin and Ethereum have a larger user base and are seen as more stable investments. However, it's important to note that even these larger cryptocurrencies can still be influenced by changes in bond yields, albeit to a lesser extent.
  478

  160
• Muhamad FaisalJul 16, 2021 · 4 years ago
  According to a recent analysis by BYDFi, a digital asset exchange, cryptocurrencies such as Ripple (XRP), Cardano (ADA), and Polkadot (DOT) have shown higher sensitivity to changes in bond yields. This is due to their relatively higher volatility and lower market capitalization compared to other cryptocurrencies. Investors should be aware of these factors when considering the impact of bond yields on their cryptocurrency investments.
  437

  110