Which cryptocurrencies are most affected by changes in the 20 year treasury yield?

3 answers

• Susan D. WilliamsJan 07, 2021 · 5 years ago
  The 20 year treasury yield has a significant impact on the cryptocurrency market, particularly on stablecoins. Stablecoins, such as Tether (USDT) and USD Coin (USDC), are directly tied to the value of the US dollar. When the treasury yield rises, it indicates higher interest rates and potential inflation, which can lead to a decrease in the value of stablecoins. On the other hand, if the treasury yield drops, it suggests lower interest rates and a potential increase in the value of stablecoins. Therefore, stablecoins are most affected by changes in the 20 year treasury yield.
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• jacobDec 02, 2023 · 2 years ago
  Fluctuations in the 20 year treasury yield can also impact other cryptocurrencies, especially those with strong ties to the traditional financial system. For example, cryptocurrencies like Bitcoin and Ethereum may experience price movements in response to changes in the treasury yield. This is because investors often view these cryptocurrencies as alternative investments or stores of value, and they may adjust their portfolios based on changes in the treasury yield. However, the impact on these cryptocurrencies may not be as direct or significant as on stablecoins.
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• Bill PhamOct 25, 2023 · 2 years ago
  According to a recent analysis by BYDFi, the cryptocurrencies most affected by changes in the 20 year treasury yield are stablecoins like Tether (USDT) and USD Coin (USDC). These stablecoins are directly tied to the value of the US dollar, and any fluctuations in the treasury yield can have a direct impact on their value. Investors and traders closely monitor the treasury yield as it provides insights into the overall economic conditions and can influence market sentiment. Therefore, it is important to consider the treasury yield when assessing the potential impact on stablecoins.
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