Why do investors dump bonds?

Another compelling reason to sell bonds is when the issuer's financial stability is compromised. When an issuer faces financial turmoil, the risk of default on bond payments increases significantly. This heightened risk can lead to a decline in the bond's market value, prompting investors to sell to mitigate potential losses.

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In addition to spot trading, BTCC also facilitates futures trading. Futures contracts allow investors to speculate on the future price of cryptocurrencies, offering leveraged exposure and the potential for enhanced returns. This service appeals to traders with a more sophisticated understanding of market dynamics.

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Selling bonds can be a strategic move when interest rates are poised to increase. This scenario often renders existing bonds less valuable, as newer bonds issued at higher rates become more attractive to investors. As a result, selling bonds in anticipation of a rate hike can help avoid potential capital losses.