Why did the cryptocurrency market suddenly surge last night? Understand these 3 points, and you can keep up next time!
I was surprised when I checked the market on my phone in the middle of the night; Bitcoin suddenly boosted the entire crypto market, and many people missed out and regretted it. In fact, this surge had been signaled earlier; it's all a chain reaction of the U.S. economy not being able to hold on. In simple terms: money is flowing out of banks and starting to rush into the crypto market.
The first bombshell: the U.S. dollar can't hold on anymore.
The U.S. dollar index fell below its lowest point in a week because employment data shocked the market, leading to a wave of layoffs in American companies. The market is now betting that the Federal Reserve must cut interest rates in December. The key signal is that the Fed's "emergency loan" SRF usage plummeted from 50 billion to 0, indicating that banks are not short on cash anymore, and this money is finally willing to flow into high-risk assets.
The second bombshell: ordinary people are completely panicked.
A survey from the University of Michigan shows consumer confidence has collapsed to a three-year low. 71% of people believe that unemployment will soar next year; everyone is afraid of both inflation and unemployment. But smart people are already taking action—stopping cash hoarding and instead hoarding anti-inflation assets; cryptocurrency has become a new choice.
The third bombshell: policies are about to shift.
Data from the New York Fed shows that although inflation expectations at 3.24% are still relatively high, they have decreased from last month's 3.38%. This is enough to set off a market frenzy; the Fed dares not hold on any longer, and the easing cycle may come sooner. Once the floodgates open, liquidity will surge into the crypto market.
Our team has found that every time before a policy turning point, the crypto market always reacts in advance. For example, Bitcoin fell continuously before last year's interest rate hikes, and now that rate cut expectations have just surfaced, institutional funds are starting to position themselves. Ordinary people often wait for concrete news before taking action, often missing the best opportunities.
Remember: when traditional assets show cracks, the volatility of the crypto market is the norm. The key is not to chase gains and cut losses but to understand the underlying logic of capital flows. The next opportunity is brewing, and what you need to do now is not to regret but to prepare your understanding and positions.
Retail investors should "patiently wait for opportunities and act decisively and accurately." Follow Xin Jie to get daily real-time strategies and loss prevention guidelines!
