How does the US bond yield affect the price of cryptocurrencies?

1 answers

• Ben-JM-CookJun 14, 2021 · 4 years ago
  At BYDFi, we believe that the US bond yield can have an impact on the price of cryptocurrencies. When the bond yield rises, it can lead to a decrease in the value of cryptocurrencies. This is because higher bond yields can make traditional investments like bonds more attractive compared to cryptocurrencies, which are often seen as riskier assets. As a result, investors may reallocate their funds from cryptocurrencies to bonds, causing the price of cryptocurrencies to decline. However, it's important to note that the relationship between the US bond yield and cryptocurrencies is not always straightforward and can be influenced by various factors. It's always a good idea to consider multiple factors when analyzing the price movements of cryptocurrencies.
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