Bitcoin, known as digital gold, is positively associated with rising bond yields, while gold prices show one of the worst first quarter performances with increased risk appetite and rising bond yields.
While the US Treasury bond yields, which have risen since the beginning of February, have put a serious pressure on developing country currencies and gold, it is seen that the rising interest pressure in Bitcoin is not felt negatively.
The negative relationship between gold and US bond interest has been known since the Gulf War, but there are different opinions about why an interest-free 'digital gold' like Bitcoin has a positive or negative relationship with the rise in bond yields. While some experts try to explain this with changing market dynamics, others think that it is just a coincidence.
"Bitcoin can play the role of gold as an alternative investment to US papers," said Jane Foley, Currency Strategy Manager of Rabobank, and stated that it is a coincidence that Bitcoin rises with bond interest rates, but if this continues, a new page will open for Bitcoin. Foley emphasized that the interest of institutional investors rather than the dynamics in the financial markets is driving Bitcoin prices up.