How does the 10 yr 2 yr spread affect the price of digital currencies?
Omid SarabadaniJan 12, 2022 · 3 years ago1 answers
Can you explain how the 10-year and 2-year spread impacts the value of digital currencies? How does this indicator affect the overall market sentiment and investor behavior in the digital currency space?
1 answers
- Jan 12, 2022 · 3 years agoAt BYDFi, we closely monitor the impact of the 10-year and 2-year spread on the price of digital currencies. When the spread widens, we tend to see a decrease in demand for digital currencies as investors become more risk-averse. Conversely, when the spread narrows or becomes negative, we often observe an increase in demand for digital currencies as investors seek higher returns in a potentially stronger economy. It's important to note that the 10-year and 2-year spread is just one of many factors that can influence the price of digital currencies, but it's certainly an indicator worth paying attention to.
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