Recent analysis has revealed that the correlation between Bitcoin and US 10-Year Treasury futures has reached an all-time low, which may reflect changes in investment behavior.
Bitcoin and US 10-Year Treasury Futures Correlation
Andre Dragosch, Head of Research at Bitwise in Europe, pointed out that over the last 60 days, the correlation between Bitcoin and US 10-Year Treasury futures has dropped to the lowest level ever recorded. This historical decoupling may signal a growing interest in Bitcoin over traditional bonds.
Analysis of US 10-Year Treasury Yield
At the beginning of April, the US 10-Year Bond Yield was 4.213%. It fell to 3.859% on April 4, then spiked sharply by 15.44% between April 7 and 11. On April 11, it hit a peak of 4.590%, followed by two minor corrections later in the month.
Bitcoin Price Dynamics
At the start of April, Bitcoin's price was $82,497.20. It dropped by 10.27% between April 1 and 8, but then increased steadily by 23.34% from April 9 to 30. From May 1 to 22, Bitcoin also saw a significant increase of 18.63%.
In May, both US 10-Year Treasury yield and Bitcoin price saw significant increases, indicating scenarios where investors become risk-on, looking into both safe and riskier assets. The dynamics in Bitcoin prices in April and its subsequent rebounds may suggest capital rotation amidst decreasing bond attractiveness.
