The exceptional growth of cryptocurrencies can be attributed to various factors, one of which is the rise in U.S. treasury yields. This surge in yields has been driven by macro-economic forces and the actions of the Federal Reserve.
According to Carlos Gonzalez Campo, a Research Analyst at 21.co, the three-month treasury yield has experienced a significant increase, rising from virtually 0% at the end of 2021 to over 5% at the time of this writing. This rise in yields has made U.S. Treasuries an attractive investment option.
In the midst of an uncertain macro and geopolitical environment, investors have sought refuge in U.S. Treasuries. This 'flight to safety' has further contributed to the growth of cryptocurrencies.
The rise in U.S. treasury yields has played a crucial role in the growth of cryptocurrencies. As investors look for safe havens amidst economic uncertainty, U.S. Treasuries have emerged as an appealing option. This trend highlights the interconnectedness of macro-economic forces and the crypto market. It is important for investors to consider these factors when making investment decisions.
