How does the conversion of US Treasury rates affect the value of cryptocurrencies?

1 answers

• Dec 29, 2021 · 3 years ago
  The conversion of US Treasury rates can have a significant impact on the value of cryptocurrencies. When Treasury rates rise, it often leads to an increase in the cost of borrowing and a decrease in the availability of cheap capital. This can result in a decrease in investment in riskier assets like cryptocurrencies, as investors may opt for safer investments with guaranteed returns. As a result, the demand for cryptocurrencies may decrease, leading to a potential decrease in their value. On the other hand, if Treasury rates decrease, it can make borrowing cheaper and increase the availability of capital, which may lead to increased investment in cryptocurrencies and potentially drive up their value. So, there is indeed a relationship between US Treasury rates and the value of cryptocurrencies.
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