Cryptorias

What drives BTC price rallies - Bitcoin halvings or US Treasurys?

What drives BTC price rallies – Bitcoin halvings or US Treasurys?

– A chart has been shared on social media showing a correlation between U.S. 10-year Treasury yields and Bitcoin halving price rallies.

– The chart suggests that Bitcoin halvings have coincided with “relative local lows” in Treasury yields, indicating a relationship between the two.

– However, the author cautions against interpreting this correlation as a direct causal link between yields and Bitcoin’s price.

– The author also argues that the majority of Bitcoin’s supply has already been issued, suggesting that daily issuance is not propping up the asset’s price.

– The article questions the usefulness of the 10-year yield chart in predicting Bitcoin’s price, noting that correlations and trends can be subjective and may not hold true in all cases.

– It highlights that the third Bitcoin halving in May 2020 did not coincide with a significant drop in yields, casting doubt on the correlation.

– The article concludes that there is no compelling evidence to suggest that Bitcoin’s halving directly impacts its price in the subsequent months.

– It emphasizes the need for a more nuanced understanding of the cryptocurrency market, taking into account various factors that influence Bitcoin’s price dynamics.

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