How does the 3 month term SOFR forward curve impact the value of digital currencies?

1 answers

• Nov 23, 2021 · 3 years ago
  The 3 month term SOFR forward curve plays a role in shaping the value of digital currencies. As a measure of future interest rates, it provides insights into market expectations and sentiment. If the forward curve indicates a positive outlook for the economy, with expectations of higher interest rates, it may attract more investors to digital currencies, driving up their value. Conversely, if the forward curve suggests a negative outlook with lower interest rates, it may lead to a decrease in the value of digital currencies as investors may seek safer investments. However, it's important to note that the impact of the forward curve on digital currencies is not the sole determinant of their value, as other factors such as market demand and regulatory developments also play a significant role.
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