Which cryptocurrencies are most influenced by changes in US bond yields?

3 answers

• Dec 30, 2021 · 3 years ago
  The impact of US bond yields on cryptocurrencies can vary depending on several factors. Generally, when bond yields rise, it indicates higher interest rates and a stronger economy, which can lead to a decrease in the value of cryptocurrencies. However, the relationship is not always straightforward, as cryptocurrencies are influenced by various other factors such as market sentiment, regulatory developments, and technological advancements. While it is difficult to pinpoint specific cryptocurrencies that are most influenced by bond yields, some experts suggest that stablecoins and cryptocurrencies with a strong focus on the US market may be more sensitive to changes in bond yields compared to others.
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• Dec 30, 2021 · 3 years ago
  When US bond yields increase, it often signals a shift in investor sentiment towards traditional assets and away from riskier investments like cryptocurrencies. This can result in a decrease in demand for cryptocurrencies and a subsequent drop in their prices. On the other hand, when bond yields decline, it can lead to increased demand for cryptocurrencies as investors seek higher returns in a low-interest-rate environment. However, it's important to note that the relationship between bond yields and cryptocurrencies is complex and can be influenced by a wide range of factors. Therefore, it is not possible to definitively identify which cryptocurrencies are most influenced by changes in US bond yields.
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• Dec 30, 2021 · 3 years ago
  BYDFi, a leading digital currency exchange, has observed that certain cryptocurrencies tend to be more responsive to changes in US bond yields. In particular, stablecoins like Tether (USDT) and USD Coin (USDC) have shown a higher correlation with bond yields compared to other cryptocurrencies. This is because stablecoins are designed to maintain a stable value relative to a specific asset, such as the US dollar. As bond yields rise, the value of stablecoins may be affected as investors reassess their risk-return profiles. However, it's important to note that the impact of bond yields on cryptocurrencies is still a relatively new area of study, and further research is needed to fully understand the dynamics of this relationship.
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