Ethereum is a volatile cryptocurrency asset. Just like other assets have their correlations, or non-correlations for price movement, the same goes with Ethereum. The ten year treasury yield has been spiking along with interest rate increase. Ethereum has a high non-correlation, with the ten year bond yield, symbol $TNX. Because higher interest rates, mean higher borrowing costs, people could potentially start spending less, investing and speculating less. The chart below shows this non-correlation, in other words, as interest rates rise on the ten year yield, ETH goes down in price. A -1.00 is a perfect non-correlation and a 1.00 is perfect correlation. Currently the correlation is a -68. Chart below, has ETH in white and the ten year in red. Thank you for reading.
