Bitcoin Resists Rate Headwinds as Correlation with Treasuries Remains Near Zero
The recent surge in U.S. Treasury yields pushed Bitcoin's price down from $87,000 to $83,000. However, a closer look at long-term data reveals a near-zero correlation between Bitcoin and Treasury yields.
According to CoinDesk, the 90-day correlation coefficient between Bitcoin's daily returns and daily changes in the U.S. 10-year Treasury yield was just -0.18. On a 180-day basis, the figure drops to -0.06, and on a one-year basis, it falls further to -0.03.
Lacey Zhang, head of research at Bitget Wallet, said that Bitcoin's near-zero correlation with U.S. Treasury yields is a genuine portfolio benefit. It suggests that Bitcoin does not trade like a simple duration asset or a rate-sensitive asset.
The low correlation can actually work as a portfolio-level advantage. The argument is that Bitcoin can play a role in improving risk-adjusted returns, much like other alternative investment assets.