Bitcoin Stock Correlation Rises as Treasury Yields Hit 15-Year High
Bitcoin (BTC) is increasingly tied to the performance of U.S. stocks, as its correlation with equities has risen again. This shift exposes the cryptocurrency to macroeconomic pressures, changing its risk profile and making it more vulnerable to stock market declines.
The 10-year Treasury yield recently neared 5.35%, its highest level since 2008. Higher yields make holding assets like Bitcoin less attractive, as they raise the opportunity cost of non-income-generating investments and reduce market liquidity.
For nearly two months, Bitcoin and U.S. stocks moved independently. However, their renewed correlation suggests that Bitcoin’s price movements are now more closely linked to broader economic conditions.
The altcoin market also saw its first weekly decline after a streak of gains. Micro-cap coins, which had previously lagged, experienced a late-stage rebound as funds flowed into them.