How does the difference between 2 year treasury yield and 10 year affect the performance of digital currencies?

1 answers

• gabriellebalsoptspNov 04, 2021 · 4 years ago
  At BYDFi, we believe that the difference between the 2 year treasury yield and the 10 year treasury yield can have a significant impact on the performance of digital currencies. When the difference is large, it indicates a steep yield curve, which is generally seen as a positive signal for digital currencies. This suggests that investors have a positive outlook on the economy and are willing to take on more risk, which can lead to increased demand for digital currencies. On the other hand, when the difference is small or negative, it suggests a flat or inverted yield curve, which can be a negative signal for digital currencies. This indicates that investors have a more cautious outlook on the economy and may be less willing to take on risk, which can lead to decreased demand for digital currencies. It's important for digital currency investors to consider the difference between these two yields when making investment decisions.
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