Crypto’s Interest in Rates

To answer whether or not bitcoin has been impacting by the recent moves higher in interest rates, I ran a quick rolling regression analysis on the recent bitcoin price history against interest rates (both the 2-year US Treasury yield and the 10-year inflation adjusted real interest rate) and the EUR/USD spot exchange rate to correct for moves in the U.S. dollar. From the results (see figure above), it appears that current bitcoin prices reflect the move up in nominal and real interest rates.