How does the 1 month forward libor curve affect the pricing of digital currencies?
Benjamin MillagouJun 22, 2024 · 2 years ago1 answers
Can you explain how the 1 month forward libor curve impacts the pricing of digital currencies? What is the relationship between the libor curve and the value of digital currencies?
1 answers
- Jay JennerFeb 27, 2021 · 5 years agoThe 1 month forward libor curve is an important factor in determining the pricing of digital currencies. As an exchange, BYDFi closely monitors the libor curve and its impact on the market. When the libor curve is steep, indicating higher future interest rates, it can lead to a decrease in demand for digital currencies. This can result in lower prices. Conversely, when the libor curve is flat or downward-sloping, indicating lower future interest rates, it can increase the demand for digital currencies and potentially drive prices higher. It's important for traders and investors to consider the relationship between the libor curve and digital currency pricing when making investment decisions.
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