According to U.Today, the correlation between Bitcoin (BTC) and the 10-year Treasury yield has reached one of its most negative readings in 14 years, dropping to minus 53 earlier this week. A Treasury yield represents the earnings investors can expect when they purchase U.S. government obligations.
Bond strategists predict that Treasury yields will likely plateau soon and may experience a slight decline by the end of the year. The U.S. 10-year Treasury note yield experienced a significant drop this year as investors anticipated the U.S. Federal Reserve to implement multiple rate cuts. However, it rebounded due to stronger-than-expected economic data and persistently high inflation.
The Federal Reserve's decision on whether to implement two or just one rate cut this year remains uncertain. There is also a possibility that there will be no rate cuts in 2024. The Bitcoin price dropped to the $66,000 level on Tuesday after Bitcoin exchange-traded funds (ETFs) ended their 19-day inflow streak. Despite high inflows 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. Additionally, the Federal Reserve is set to announce its interest rate decision. Lower borrowing costs could be beneficial for risk assets such as Bitcoin.