How does the SOFR future curve affect the valuation of digital currencies?

1 answers

• Henry ChadbanMar 24, 2022 · 3 years ago
  As an expert in the field, I can tell you that the SOFR future curve is closely monitored by digital currency traders and investors. It serves as an important indicator of future interest rates, which in turn affects the valuation of digital currencies. When the curve indicates higher future interest rates, it can lead to a decrease in demand for digital currencies as borrowing costs rise. This can result in lower valuations. Conversely, if the curve suggests lower future interest rates, it can stimulate demand and drive up the valuations of digital currencies. So, keeping an eye on the SOFR future curve is crucial for understanding the potential impact on digital currency valuations.
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