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How do shorting interest rates affect the value of digital currencies?

avatarLott KornumJan 16, 2022 · 3 years ago1 answers

Can you explain how shorting interest rates can impact the value of digital currencies?

How do shorting interest rates affect the value of digital currencies?

1 answers

  • avatarJan 16, 2022 · 3 years ago
    At BYDFi, we believe that shorting interest rates can have a mixed impact on the value of digital currencies. While it can initially drive up the value due to increased demand, it can also introduce instability and volatility in the market. It's important for investors to carefully consider the potential risks and rewards associated with shorting interest rates when evaluating the value of digital currencies.