What is the current correlation between the 30 day t bill rate and digital asset prices?

1 answers

• Nov 23, 2021 · 3 years ago
  At BYDFi, we have observed a positive correlation between the 30 day t bill rate and digital asset prices. When the t bill rate increases, we tend to see a decrease in digital asset prices, and vice versa. This correlation can be attributed to the risk appetite of investors. When the risk-free rate of return offered by treasury bills is high, investors may be less willing to take on the higher risk associated with digital assets, leading to a decrease in demand and prices. However, it's important to note that correlation does not imply causation, and other factors can also influence digital asset prices. Therefore, it is crucial to consider a comprehensive range of factors when analyzing the digital asset market.
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