$BTC
đąđą Bitcoin does not move entirely in lockstep with bond yields, even though the two are linked through financial conditions and risk appetite
âWhen yields rise due to higher real interest rates and a tighter monetary policy, the opportunity cost of holding Bitcoin increases, whilst capital flows may favour income-generating assets
Conversely, if yields fall alongside improving liquidity and expectations of policy easing, the valuation environment for Bitcoin may turn more positive
âHowever, a decline in yields driven by recession fears or a surge in demand for safe-haven assets does not necessarily translate into a positive outcome for high-risk assets
$ETH
âClearly, what matters is not merely whether 10-year yields are rising or falling, but the underlying drivers behind this movement
A rise in yields driven by robust economic growth can have a very different implication to one driven by inflationary pressures or an expanding term premium
Similarly, a fall in yields caused by easing inflation differs from a sharp decline prompted by recession risks
$TMF
#Market_Update #USMarketUpdate
đąđą Bitcoin does not move entirely in lockstep with bond yields, even though the two are linked through financial conditions and risk appetite
âWhen yields rise due to higher real interest rates and a tighter monetary policy, the opportunity cost of holding Bitcoin increases, whilst capital flows may favour income-generating assets
Conversely, if yields fall alongside improving liquidity and expectations of policy easing, the valuation environment for Bitcoin may turn more positive
âHowever, a decline in yields driven by recession fears or a surge in demand for safe-haven assets does not necessarily translate into a positive outcome for high-risk assets
$ETH
âClearly, what matters is not merely whether 10-year yields are rising or falling, but the underlying drivers behind this movement
A rise in yields driven by robust economic growth can have a very different implication to one driven by inflationary pressures or an expanding term premium
Similarly, a fall in yields caused by easing inflation differs from a sharp decline prompted by recession risks
$TMF
#Market_Update #USMarketUpdate
