While worldwide markets closely observe macroeconomic indicators, a likely pattern is developing that resembles the past. As per CryptoQuant, a prominent crypto analytics provider, the respective pattern suggests the rise in the prices of Bitcoin and gold triggered by Treasury yields. The analytics firm took to its official X account to provide the present market scenario in this respect.
Is the decrease in the 13-week Treasury yield driving up prices?In 2008, as the 13-week Treasury Bill Yields started to lower, gold prices soared from $590 to a peak of $1900 per ounce in 2011.In 2024 a similar trend is occurring, with gold rising from $2000 to nearly $2700.… pic.twitter.com/zTPbeWUqeP
— CryptoQuant.com (@cryptoquant_com) October 1, 2024
CryptoQuant Highlights the Relationship of Dipping Treasury Yields with Gold and Bitcoin Prices
CryptoQuant noted that the relationship between the slumping Treasury yields and increasing prices of gold has been effectively documented. Back in 2008, during the financial crisis that shocked the worldwide markets, the Treasury yield started declining. Because of this, the gold prices jumped from nearly $590 for one ounce. After that, in 2011, the respective figure reached a peak level of $1,900.
Keeping that in view, investors swarmed toward the precious metal targeting it as a safe-haven asset. Hence, they intended to prevent the potential damage to be caused by uncertainty and volatility. This year, an analogous trend is emerging while Treasury yields are once again plunging. Gold prices have also responded similarly. The precious metal has reportedly spiked from $2,000 to almost $2,700 for each ounce.
Both the Top Assets Respond Positively to Decreasing Treasury Yields
This signifies the increasing demand from investors who fear a likely economic decline or the current inflation concerns. Though there is still uncertainty about whether the chief crypto token will completely reflect gold’s rise, the present market dynamics display a positive response from both the top assets for dipping Treasury yields.
