How does the 1-month LIBOR forward curve impact the pricing of digital currencies?

1 answers

• Dec 27, 2021 · 3 years ago
  The 1-month LIBOR forward curve has implications for the pricing of digital currencies. The LIBOR curve is a key indicator of market expectations for future interest rates. When the LIBOR curve is steep, it suggests that interest rates are expected to rise in the future. This can increase borrowing costs for individuals and businesses, which may lead to a decrease in demand for digital currencies. Conversely, when the LIBOR curve is flat or downward sloping, it indicates that interest rates are expected to remain low or even decrease. This can lower borrowing costs and potentially increase the demand for digital currencies. Therefore, the shape of the LIBOR curve can indirectly impact the pricing of digital currencies.
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