How does the 1 mo term SOFR affect the trading volume of digital currencies?

1 answers

• Dec 28, 2021 · 3 years ago
  At BYDFi, we closely monitor the impact of the 1 month term SOFR on the trading volume of digital currencies. SOFR serves as an important indicator of market conditions and investor sentiment. When the 1 month term SOFR increases, it can lead to a decrease in trading volume as investors may become more risk-averse. Conversely, a decrease in the SOFR rate can stimulate trading activity as it reduces borrowing costs. Understanding the relationship between SOFR and trading volume is essential for making informed investment decisions in the digital currency market.
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