Crypto Yields Fall Short in Comparison to the US Govt. Debt

Crypto Yields Fall Short in Comparison to the US Govt. Debt

The post Crypto Yields Fall Short in Comparison to the US Govt. Debt appeared first on Coinpedia - Fintech & Cryptocurreny News Media| Crypto Guide

Amid soaring inflation, the FED has been tightening the monetary measures by raising the interest rates. Jaime Baeza (CEO, ANB investments) said: “Two years ago, interest rates in crypto were at least 10% and in the real world, rates were either negative or near-zero. Now it’s almost the reverse because yields in crypto have collapsed and central banks are raising rates”. Cryptocurrencies are far from proving themselves as a hedge against inflation and market volatility. Yields in digital assets have tanked under what was offered by the U.S. government debt, and are guided by the trading volumes instead of the risk sentiment. Lower yields mean that the investors will buy fewer tokens to lend, which might have a cascading effect, leading to lower demand and lower prices.