Which cryptocurrencies are most affected by changes in 10yr ust rates?

3 answers

• Igor ContriMar 25, 2023 · 2 years ago
  Changes in 10-year U.S. Treasury rates can have a significant impact on the cryptocurrency market. Cryptocurrencies, like Bitcoin and Ethereum, are often considered as alternative investments to traditional assets such as stocks and bonds. When UST rates rise, it can lead to increased borrowing costs and reduced investor appetite for riskier assets, including cryptocurrencies. As a result, the prices of cryptocurrencies may experience downward pressure. On the other hand, when UST rates decline, it can make cryptocurrencies more attractive as they offer the potential for higher returns compared to low-yielding fixed-income investments. Therefore, cryptocurrencies that are more closely tied to investor sentiment and perceived risk, such as altcoins and smaller market cap cryptocurrencies, are generally more affected by changes in 10yr UST rates.
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• Mine TopcuogluNov 08, 2022 · 3 years ago
  Changes in 10-year U.S. Treasury rates can impact different cryptocurrencies in various ways. While major cryptocurrencies like Bitcoin and Ethereum are often seen as safe-haven assets and may be less affected by short-term rate changes, smaller and more speculative cryptocurrencies can be highly sensitive to interest rate movements. This is because smaller cryptocurrencies tend to have less liquidity and are more influenced by market sentiment. When UST rates rise, investors may shift their funds from riskier cryptocurrencies to safer assets, leading to a decline in the prices of smaller cryptocurrencies. Conversely, when UST rates decrease, investors may seek higher returns in riskier assets, causing smaller cryptocurrencies to outperform. Therefore, it is important for cryptocurrency investors to consider the impact of 10yr UST rates on different cryptocurrencies and adjust their investment strategies accordingly.
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• Ploug KjellerupDec 22, 2020 · 5 years ago
  According to a recent analysis by BYDFi, a digital currency exchange, the cryptocurrencies that are most affected by changes in 10-year U.S. Treasury rates are altcoins with smaller market capitalization. These cryptocurrencies tend to have higher volatility and are more sensitive to changes in investor sentiment. When UST rates rise, investors may become more risk-averse and move their investments away from altcoins, leading to a decline in their prices. On the other hand, when UST rates decrease, investors may be more willing to take on higher risk and allocate more funds to altcoins, resulting in an increase in their prices. Therefore, if you are considering investing in cryptocurrencies and are concerned about the impact of 10yr UST rates, it is advisable to pay close attention to altcoins and their performance in relation to interest rate changes.
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