With the addition of a rise in inflation-adjusted yields on U.S. government bonds, investors may be wondering how it could affect other investing. But crypto observers expect bitcoin and digital assets to remain resilient. The uptick in real yield has some people worried that there will be an aversion to stocks and the broader financial markets, as the 5-year real yield rose 2% last week. - With the rise in real yield, it can make investors not want to take bigger risks like investing in risky assets like gold or bitcoin.
- But according to crypto banking firm BCB Group's head of OTC trading Richard Usher, the real yield uptick is more of a worry for traditional stocks than digital assets.
- "Real yields are an issue with a return in a one-year bond yielding 6%; it is now a genuine alternative to stock market exposure. The question to ask is which type of investor does this return appeal to," Usher said. "The typical investor in crypto or tech stocks is looking for a higher potential return or is investing for the longer term in the sector or asset class growth. Hence I suspect the rise in real yields is more a headache to blue chip stocks than to markets like technology or crypto and will not disrupt the medium-term growth story."
|
