How does the WTI futures curve affect digital asset prices?

1 answers

• Mar 06, 2022 · 3 years ago
  As an expert in the digital asset industry, I can confirm that the WTI futures curve does have an impact on digital asset prices. The WTI futures curve reflects market expectations for future oil prices, which can influence investor sentiment and demand for digital assets. When the futures curve is in contango, it suggests that investors expect higher oil prices in the future, which can drive up demand for digital assets as a hedge against inflation. Conversely, when the futures curve is in backwardation, it indicates lower expected oil prices, which may reduce investor interest in digital assets. Therefore, understanding and analyzing the WTI futures curve is essential for predicting and reacting to potential price movements in the digital asset market.
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