Efforts to Cool Down Bond Yields Seen as Helping Bitcoin
Dow Jones08-21 21:26
0926 ET - The prospect of lower interest rates boosts bitcoin, according to 21Rates. The crypto information firm says in a note that falling borrowing costs also cheapen bitcoin-backed loans. "Many bitcoin lending platforms price their floating-rate products against Fed funds or SOFR benchmarks," 21Rates says. "A sustained compression of long-end yields, if it continues, would mechanically reduce the rates borrowers pay on platforms like Arch and Coinbase Credit over time." Long-dated Treasury yields decline from multiyear highs as the government plans to increase its long-term bond buybacks. Bitcoin rises 6%.
At the request of the copyright holder, you need to log in to view this content
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
Comments