A bitcoin sign with a graphic in the background.
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Bitcoin prices rebounded on Thursday after falling alongside US equity futures, as the benchmark 10-year Treasury note yield hit 2% for the first time since 2019.
Bitcoin rose 1.4% to $45,330.34, according to Coin Metrics. In the early hours of the morning, it fell about 2% as new key inflation data showed hotter-than-expected price pressures, sending 10-year yields higher.
At its peak, the benchmark yield hit 2.001% on Thursday.
Technology stocks tend to fall as yields rise, as growth-oriented companies are more likely to provide investors with higher returns in the far future than in the short term.
As equity investors dismiss the hot inflation report, so do bitcoin investors.
Cryptocurrencies have been trading like stocks, and especially as tech stocks, for several months as more institutional investors have taken an interest in cryptocurrencies as a risky asset. As a result, cryptocurrencies have been selling off in tandem with tech stocks, which fell sharply at the start of the year, despite recovering in February.
