SOFR STARTS TO DROP: CHEAP BORROWING AHEAD When the Secured Overnight Financing Rate (SOFR) falls, large institutions can borrow cash overnight more cheaply using Treasury securities as collateral. This often fuels rising asset prices and increased market activity. Digital assets and $BTC tend to benefit first. Watch liquidity, not headlines - SOFR often leads by weeks. According to the Federal Reserve Bank of New York, SOFR has shown a notable drop since October 17.