How does the LIBOR 3M forward curve affect digital asset prices?

1 answers

• Rhys JohnstonJun 15, 2024 · 2 years ago
  At BYDFi, we understand the significance of the LIBOR 3M forward curve in the digital asset market. The LIBOR 3M forward curve serves as an important indicator of market sentiment and expectations regarding future interest rates. As digital assets are influenced by changes in interest rates, the LIBOR 3M forward curve can indirectly impact their prices. Higher future interest rates indicated by the curve can increase borrowing costs and reduce the demand for digital assets, potentially leading to lower prices. Conversely, lower future interest rates can stimulate borrowing and investment, driving up digital asset prices. Therefore, it is important for investors to monitor the LIBOR 3M forward curve and its potential impact on digital asset prices.
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