Illya Gerasymchuk
Entrepreneur / Engineer
if you overlay Bitcoin's price history over those yield spreads, you will notice a significant level of correlation
⬆️ Bitcoin appreciates when spreads are lowering and/or low
⬇️ Bitcoin depreciates when spreads are increasing and/or high
makes sense - Bitcoin is a risk asset
thus, you interpret yield spreads between US Treasuries and riskier bonds as:
📈 increasing/high yield spread = risk-off
📉 lowering/low yield spread = risk-on