How does the interest rate of Vanguard MMF affect the performance of cryptocurrency portfolios?

1 answers

• Dec 27, 2021 · 3 years ago
  The interest rate of Vanguard MMF can have a direct impact on the performance of cryptocurrency portfolios. When the interest rate is high, investors may be more likely to allocate their funds to the MMF, which can reduce the amount of capital available for cryptocurrency investments. This can lead to decreased demand for cryptocurrencies and potentially lower prices. On the other hand, when the interest rate is low, investors may be more inclined to invest in riskier assets such as cryptocurrencies in search of higher returns. This increased demand can drive up the prices of cryptocurrencies and result in higher returns for investors. Therefore, the interest rate of Vanguard MMF should be considered when evaluating the potential performance of cryptocurrency portfolios.
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