Why is the 1 month T-bill rate considered important for cryptocurrency investors?

1 answers

• Nov 24, 2021 · 3 years ago
  At BYDFi, we believe that the 1 month T-bill rate is an important factor for cryptocurrency investors to consider. The T-bill rate reflects the risk-free rate of return in the market, and it serves as a benchmark for evaluating the potential returns of cryptocurrencies. When the T-bill rate is high, it indicates that the risk-free rate of return is also high, which can make cryptocurrencies appear less attractive in comparison. On the other hand, when the T-bill rate is low, it suggests that the risk-free rate of return is lower, which can make cryptocurrencies more appealing as an investment option. Therefore, keeping an eye on the 1 month T-bill rate can help cryptocurrency investors assess the relative attractiveness of cryptocurrencies compared to other investment opportunities.
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