How does the 10yr 3mo spread affect the value of digital currencies?

3 answers

• Olga HernandezJul 18, 2023 · 2 years ago
  The 10-year 3-month spread, also known as the yield curve, can have an impact on the value of digital currencies. When the yield curve is steep, meaning that the difference between long-term and short-term interest rates is large, it can signal a strong economy. This can lead to increased investor confidence and a higher demand for digital currencies, which can drive up their value.
  385

  193
• Grimes SchultzNov 23, 2021 · 4 years ago
  On the other hand, when the yield curve is flat or inverted, with long-term interest rates lower than short-term rates, it can indicate a weak economy or a potential recession. In this scenario, investors may become more risk-averse and seek safer investments, such as traditional currencies or assets. This decreased demand for digital currencies can result in a decline in their value.
  387

  129
• Google NextMar 11, 2024 · a year ago
  As a digital currency exchange, BYDFi understands the importance of monitoring the yield curve and its potential impact on the value of digital currencies. While the 10-year 3-month spread is just one factor among many that can influence digital currency prices, it is worth considering in the overall analysis of market trends and investor sentiment.
  351

  88