Negative-Yielding Bonds have vanished, How does it affect Bitcoin?
Negative-yielding bonds have dropped to zero after peaking in December 2020 at $18.4 trillion. The data is based on Bloomberg and Barclays Global Negative-Yielding Debt Index. Bonds with negative yields pay less money upon maturity than upon acquisition. Moreover, with central banks continuing their monetary tightening, the development restricts investments in risky assets, such as Bitcoin (BTC). Even after accounting for inflation determined by the CPI (consumer price index), bond yields are still negative. However, whether it increases the amount of money entering Bitcoin (BTC) and other cryptos is yet to be seen. How do negative-yielding bonds affect Bitcoin? A bond payoff that exceeds market-based indicators of inflation expectations has a positive real yield. Therefore, the higher the real yield, the less motivation there is, to pursue gains from other assets like cryptocurrency, equities, and gold. In the aftermath of the coronavirus-caused crash in March 2020, negativ...