Bitcoin Faces ‘Crucial’ 36 Hours on Heightened Sensitivity to US Yields
- Bitcoin and US 10-year yield correlation is unusually negative
- US inflation and the Fed policy outlook may whip up volatility
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Global markets are on tenterhooks ahead of a Federal Reserve interest-rate decision and key US inflation figures. Bitcoin investors have reason to be particularly alert for potential volatility.
A 30-day correlation between Bitcoin and the US 10-year Treasury yield is at minus 53, one of the most negative readings in data compiled by Bloomberg since 2010. The metric suggests the largest digital asset at present is moving in the opposite direction to the benchmark bond yield to an unusual degree.