Since the Federal Reserve started raising interest rates to keep inflation in check, the poor performance of the cryptocurrency and stock markets has forced investor interest in U.S. Treasuries to rise.
Investors flock to US Treasuries
Investors appear to be piling up on US Treasuries due to their track record as relatively safe havens in light of the recent macroeconomic crisis. As interest rates rise sharply, so do government bond yields.
On the other hand, the current economic conditions have not made investors less willing to trade. trade web report September trading volume was $25.1 trillion, with average daily trading volume (ADV) up 17.2% year-over-year.
US Treasury activity ADV fell 3.8% year-on-year to $129.3 billion, driven by institutional and wholesale market activity. There was record transaction volume among retailers due to rising interest rates.
US Treasury yields rose from 2.88% to 3.89% last quarter. For context, Bitcoin (BTC), the flagship digital asset, has fallen about 2% in value, while Ethereum (ETH) has risen more than 90%, according to CryptoSlate data. The network’s move to Proof of Stake has fueled ETH’s positive price performance.
on the other hand, year-on-year performance It shows why more people choose government bonds than BTC or ETH. The 10-year Treasury chart showed yields rising to 3.89% from 1.61% over the past year, while the top two digital assets lost more than 60% of their value.
The Treasury Direct website has more web traffic than Ethereum.org. Traffic to the Treasury Direct Quarterly website surpassed Ethereum’s traffic on May 29 and was 1.8x as of the end of September.
On May 29, 2022, Treasury Direct surpassed Ethereum in quarterly website traffic. 1.8 times larger.
A very exciting project.congratulations team pic.twitter.com/Z0nkJx8iId
— Alex Good (@goodalexander) October 10, 2022
Dow Jones is more volatile than BTC
As of October 2007, the Dow Jones Indices were more volatile than Bitcoin, according to Zerohedge data. The Dow Jones Indices tracks the top 30 industrial stocks.
The Federal Reserve finally did it, they broke the market:
The Dow Jones (the 30 largest industrial stocks on the planet) is officially more volatile than Bitcoin. pic.twitter.com/BfveiMYZy2
— Zero hedge (@zerohedge) October 7, 2022
This means Bitcoin’s notorious volatility appears to be declining after months of mirroring the stock’s performance. It also means that there is
On the other hand, the cooling could be due to the falling value of Bitcoin. The asset has been trading within the same range for the last three months.
