How does the 90-day average SOFR affect the value of digital currencies?

1 answers

• oxygenOct 09, 2022 · 4 years ago
  The 90-day average SOFR is a key factor that affects the value of digital currencies. As a trader, I closely monitor the SOFR because it provides insights into the overall market conditions. When the 90-day average SOFR rises, it can indicate higher borrowing costs for banks, which may lead to reduced liquidity and lower demand for digital currencies. On the other hand, a decrease in the 90-day average SOFR can signal lower borrowing costs, which may increase liquidity and potentially drive up the value of digital currencies. It's important to consider the 90-day average SOFR in conjunction with other market factors when assessing the value of digital currencies.
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