What is the correlation between 3-year treasury bill rates and cryptocurrency prices?

3 answers

• Dec 26, 2021 · 3 years ago
  Yes, there can be a correlation between 3-year treasury bill rates and cryptocurrency prices. When treasury bill rates increase, it can lead to a decrease in the value of cryptocurrencies. This is because higher treasury bill rates can attract investors to traditional investment options, such as bonds or savings accounts, which offer a guaranteed return. As a result, there may be a decrease in demand for cryptocurrencies, leading to a potential drop in their prices.
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• Dec 26, 2021 · 3 years ago
  The correlation between 3-year treasury bill rates and cryptocurrency prices is not always straightforward. While higher treasury bill rates can attract investors away from cryptocurrencies, it is important to consider other factors that influence cryptocurrency prices, such as market sentiment, technological advancements, and regulatory developments. Additionally, cryptocurrencies are known for their volatility, which means their prices can be influenced by various factors beyond traditional financial indicators.
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• Dec 26, 2021 · 3 years ago
  According to a study conducted by BYDFi, there is a weak negative correlation between 3-year treasury bill rates and cryptocurrency prices. The study analyzed historical data and found that when treasury bill rates increase, there is a slight decrease in the value of cryptocurrencies. However, it is important to note that this correlation is not significant and other factors play a more significant role in determining cryptocurrency prices. Therefore, while treasury bill rates may have some influence, they are not the sole determinant of cryptocurrency prices.
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