How Does the Risk-Free Rate Influence the Forward Price of a Cryptocurrency Asset?

The risk-free rate influences the forward price of a cryptocurrency asset through the cost-of-carry model. The forward price is calculated as the spot price plus the cost of financing (risk-free rate) and storage, minus any income (like a dividend or yield).

For crypto, the forward price is generally Spot e^(r T), where r is the risk-free rate and T is time. A higher risk-free rate increases the forward price.