According to data provided by Barchart, the correlation between Bitcoin (BTC) and the 10-year Treasury yield has plunged to one of its most negative readings in 14 years.
Earlier this week, the correlation dropped to minus 53.
A Treasury yield is how much investors can earn when they purchase U.S. government obligations.
Bond strategists expect Treasury yields to plateau in the near future and experience a slight decline at the end of this year.
The U.S. 10-year Treasury note yield took a nosedive this year due to investor expecting the U.S. Federal Reserve to implement multiple rate cuts. However, it then bounced back due to stronger-than-expected economic data and persistently elevated inflation. card
It is now not clear whether or not the Fed will opt for two or just one rate cut this year. That said, there’s still a possibility that there will be no rate cuts in 2024.
As reported by U.Today, the Bitcoin price plunged to the $66,000 level on Tuesday after Bitcoin exchange-traded funds (ETFs) ended their 19-day inflow streak. Despite high inflows that were recorded last week, the leading cryptocurrency failed to surpass the $72,000 mark on Tuesday due to stronger-than-expected jobs data.
The leading cryptocurrency is expected to experience another bout of volatility this Wednesday due to the upcoming consumer price index (CPI) report. Moreover, the Fed is on track to announce its interest rate decision.
Lower borrowing costs would be beneficial for risk assets such as Bitcoin.