US Treasury yields are rising — What does it mean for Bitcoin price?
1 min read
United States Government bonds, or Treasurys, have a tremendous influence across all tradeable markets, including Bitcoin (
Recession risks could have distorted the yield data
The only certain thing at the moment is that investors’ expectations for a recession are becoming more evident. Aside from the Treasury’s yield, the U.S. Conference Board’s leading indicators declined for 14 consecutive months, as described by Charlie Bilello:
The Conference Board’s Leading Economic Index declined in May for the 14th month in a row.
“We project that the US economy will contract over the Q3 2023 to Q1 2024 period. The recession likely will be due to continued tightness in monetary policy and lower government spending.”… pic.twitter.com/wQfy8a3DVq
— Charlie Bilello (@charliebilello) June 23, 2023
Consequently, those betting that Bitcoin’s recent decoupling from the U.S. Treasury’s yield inverse correlation will quickly revert might come out disappointed. Data confirms that government bond yields are higher than normal due to increased expectations of a recession and economic crisis ahead.
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