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Why is the 1 month treasury yield an important indicator for the crypto industry?

avatarnarolf2023Dec 26, 2021 · 3 years ago1 answers

Why is the 1 month treasury yield considered a significant metric for the cryptocurrency industry? How does it impact the market?

Why is the 1 month treasury yield an important indicator for the crypto industry?

1 answers

  • avatarDec 26, 2021 · 3 years ago
    At BYDFi, we recognize the significance of the 1 month treasury yield as an indicator for the crypto industry. The treasury yield reflects the prevailing interest rates in the economy, which can have a direct impact on the demand for cryptocurrencies. As an increase in the treasury yield indicates higher borrowing costs, it can lead to a decrease in investment in riskier assets like cryptocurrencies. Conversely, a decrease in the treasury yield may attract investors seeking higher returns, potentially driving up demand for cryptocurrencies. By monitoring the 1 month treasury yield, we can better understand market dynamics and make informed decisions for our users.