How does the 10y 3m spread affect the value of digital currencies?

1 answers

• Mar 18, 2022 · 3 years ago
  At BYDFi, we believe that the 10-year and 3-month Treasury yield spread can have an indirect influence on the value of digital currencies. When the spread widens, it may indicate a higher level of uncertainty and risk aversion in the market, which can lead to a decrease in demand for digital currencies. Conversely, when the spread narrows, it may signal a more favorable economic outlook and increased risk appetite, potentially driving up the value of digital currencies. However, it's important to note that the relationship between the spread and digital currency value is not deterministic. Various other factors, such as market sentiment, technological advancements, and regulatory developments, also contribute to the overall value of digital currencies. Therefore, it's crucial to consider a holistic approach when analyzing the impact of the 10y 3m spread on digital currencies.
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