What is the impact of the 2018 US mortgage interest rates on the cryptocurrency market?

3 answers

• Dec 26, 2021 · 3 years ago
  The 2018 US mortgage interest rates had a significant impact on the cryptocurrency market. As mortgage rates increased, many investors shifted their focus towards traditional investments such as real estate, leading to a decrease in demand for cryptocurrencies. This decrease in demand resulted in a decline in cryptocurrency prices and trading volumes. On the other hand, when mortgage rates decreased, investors had more disposable income, which they could potentially invest in cryptocurrencies. This increased demand for cryptocurrencies could lead to a rise in prices and trading volumes. Overall, the correlation between mortgage interest rates and the cryptocurrency market is complex and can be influenced by various factors such as investor sentiment and market conditions.
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• Dec 26, 2021 · 3 years ago
  The impact of the 2018 US mortgage interest rates on the cryptocurrency market was mixed. While some experts argue that there is a correlation between mortgage rates and cryptocurrency prices, others believe that the relationship is not significant enough to have a substantial impact. It is important to note that the cryptocurrency market is highly volatile and influenced by various factors such as regulatory changes, investor sentiment, and technological advancements. Therefore, it is difficult to attribute the fluctuations in cryptocurrency prices solely to mortgage interest rates. However, it is possible that changes in mortgage rates could indirectly affect investor confidence and overall market sentiment, which could, in turn, influence cryptocurrency prices.
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• Dec 26, 2021 · 3 years ago
  According to a study conducted by BYDFi, there is a positive correlation between the 2018 US mortgage interest rates and the cryptocurrency market. The study found that as mortgage rates increased, there was a decrease in trading volumes and a decline in cryptocurrency prices. This can be attributed to the fact that higher mortgage rates lead to a decrease in disposable income, which affects investors' ability to invest in cryptocurrencies. Conversely, when mortgage rates decreased, there was an increase in trading volumes and a rise in cryptocurrency prices. This suggests that mortgage interest rates can have a significant impact on the cryptocurrency market, albeit indirectly through their influence on investor sentiment and purchasing power.
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