Afraid of the yield curve?
Should the yield curve be a concern for bitcoin bulls? They mapped together rather well for a few years, but bitcoin appears steadfast to reject a move to inversion for U.S. rates.
Is there legitimacy to the relationship? Inversion of the yield curve has been a consistently good indicator of economic trouble. When short-term rates are higher than long-term rates, the economy slows down. We’re entering a recession. Investors have a more significant concern for the “right now” rather the “down the road.”
Perhaps this break can be tied to general sentiment around bitcoin. The “right now” doesn’t look too bad. Wall Streeters are flocking to crypto and helping drive adoption. Exchanges have indicated that traders are pulling BTC off the exchanges, which should signify they have little intention of selling their holdings anytime soon.
Would an economic slowdown/recession be all that bad for BTC? Perhaps, perhaps not. The crypto crowd tends to put their heads down and build during tough times. Attitude is everything.
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