How does the 1 month treasury yield affect the price of digital currencies?

3 answers

• Dec 27, 2021 · 3 years ago
  Absolutely! The 1 month treasury yield can have an impact on the price of digital currencies. When the treasury yield increases, it usually indicates that interest rates are rising. This can attract investors to traditional financial instruments like bonds, which offer a guaranteed return. As a result, some investors may shift their funds from digital currencies to bonds, leading to a decrease in demand for digital currencies and a potential decrease in their price.
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• Dec 27, 2021 · 3 years ago
  The 1 month treasury yield is closely monitored by investors as it provides insights into the overall health of the economy. When the treasury yield rises, it suggests that the economy is performing well, which can boost investor confidence in traditional financial markets. This increased confidence may divert some investment away from digital currencies and towards more traditional assets, causing a potential decline in the price of digital currencies.
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• Dec 27, 2021 · 3 years ago
  According to a study conducted by BYDFi, there is a weak negative correlation between the 1 month treasury yield and the price of digital currencies. This means that when the treasury yield increases, digital currencies may experience a slight decrease in price. However, it's important to note that this correlation is not strong and other factors, such as market sentiment and global economic conditions, also play a significant role in determining the price of digital currencies.
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