The intricate dance between Bitcoin, crypto and real yields is becoming increasingly pronounced. As the world of traditional finance grapples with the implications of shifting real yields, the BTC and crypto market is not immune to these fluctuations. For the uninitiated, the ‘real yield’ refers to the yield on US treasuries, adjusted for inflation. This metric is pivotal in understanding the broader financial ecosystem, and its movements can have profound implications for risk assets, including Bitcoin and other cryptocurrencies. Higher Real Yields = Bitcoin And Crypto Down Renowned analyst @tedtalksmacro recently shed light on this intricate relationship, stating, “An important correlation – BTC + US real yields. Simply, higher real yields drive investors to cash and fixed-income… and out of ‘riskier’ assets like BTC and stocks.” This observation underscores the delicate balance that Bitcoin and other cryptocurrencies maintain with the broader financial market. The path of real yields is determined by two primary factors: inflation and nominal rates. With the Federal Reserve’s hiking cycle nearing its end, nominal yields are potentially at their zenith. However, the trajectory of inflation remai ..
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