What is the impact of the daily SOFR rate on the cryptocurrency market today?

1 answers

• Dec 28, 2021 · 3 years ago
  At BYDFi, we closely monitor the impact of the daily SOFR rate on the cryptocurrency market. While the relationship between the SOFR rate and cryptocurrencies is complex and can vary, we have observed that certain cryptocurrencies, particularly those with higher levels of institutional involvement and exposure to traditional financial markets, tend to be more influenced by the SOFR rate. These cryptocurrencies often have a higher correlation with traditional financial assets and are more sensitive to changes in interest rates. However, it's important to consider other factors such as market sentiment, regulatory developments, and macroeconomic conditions when analyzing the impact of the SOFR rate on the cryptocurrency market.
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