Economy

In a bold move to revive its struggling economy, China has just cut key interest rates to the lowest levels ever seen 🏦⬇️. The country is facing a tough mix of problems: people aren’t spending much, the real estate market is crashing 🏚️, and tensions with the U.S. are still hot 🔥. So, the government hopes that cheaper loans will give the economy the boost it desperately needs.
👉 What’s Changing?
China’s 1-year loan rate—used for most personal and business loans—was cut from 3.1% to 3.0%. Meanwhile, the 5-year rate, which affects mortgages, dropped from 3.6% to 3.5% 🏠. These might look like small numbers, but they’re a big deal—these are the lowest rates since 2019! It’s the first time in 7 months that China has made such a move.

📉 Why Is China Doing This?
The economy is showing serious signs of weakness:Retail sales are growing way slower than expected 🛍️Home prices keep falling in big cities 🏙️Loan demand is drying up, even though banks are trying to lend more 💸And while there’s been a short break in the US-China trade fight, nobody knows how long that peace will last 🤝⚠️.

💬 What Experts Are Saying
Economists say these cuts might help a little by making loans cheaper and reducing debt pressure on businesses and people 💰. But they warn: don’t expect miracles. These small cuts won’t be enough to turn things around without bigger government spending and deeper reforms. “It’s a start, but not a game-changer,” says Zichun Huang, a top China economist.

📊 Bottom Line
China is sending a clear message: it knows the economy needs help, and it’s ready to act. But unless Beijing pulls out more tools to stimulate growth, these cuts alone might just be a band-aid on a much bigger wound 🚑💔. Global investors are watching closely because when China sneezes, the world catches a cold 🌍🤧.
#china #economy #BTCNextATH
$BTC

The recent economic indicators have sent shockwaves through Japan’s financial landscape, with the country experiencing severe economic turmoil.
Reportedly, Japan’s 40-year bond yield has surged to its highest level in over 20 years, reflecting growing concerns about the country’s fiscal stability. Prime Minister Shigeru Ishiba warned that the country is experiencing a financial crisis “worse than Greece.”
Moreover, Japan’s economy contracted by 0.7%, marking its first quarterly decline in a year. The Japanese stock exchange Nikkei 225 also witnessed a sharp sell-off amid economic struggles and the Moody’s downgrading credit rating for the US.

These developments are poised to have profound implications on the crypto market as well.
After a strong bull run on Sunday pushed Bitcoin (BTC) over $107k, the crypto markets are witnessing a crash today with BTC, ETH, and XRP dropping 3.2%, 4%, and 5%, respectively, in the past 24 hours. While this crash is not directly due to Japan’s economic woes, it does have bearings on the future course of the crypto market from here on.
Japan Faces Severe Economic Turmoil: How Will It Impact the Crypto Market?
As revealed by crypto commentator Kobeissi Letter, Japan is currently experiencing a severe financial crisis, with its 40-year bond yield hitting its highest level in over 20 years. This yield spike highlights the growing concerns over the country’s economy. The economy is facing headwinds as its GDP continues to decline in consecutive quarters.
Over the past week, the crypto market has seen a rollercoaster ride, with top cryptocurrencies facing high volatility. As per reports, Japan’s economic crisis is mostly driven by the crypto market crash. Despite this, the yield hike is poised to push crypto prices up.
Notably, the traditional safe-haven assets like Japanese bonds are losing their appeal. This is due to skyrocketing yields and dwindling confidence in debt sustainability. Thus, investors will turn to alternative assets like Bitcoin and Ethereum, reassessing their risk tolerance.
In addition, the Nikkei 225 index plunged 3.2% on May 19, 2025, at the Tokyo Stock Exchange close, signaling increased market anxiety. While shifting capital flows may present opportunities, they also create a high-volatility environment in the crypto market. The uncertainty may drive capital away from risky assets like crypto.
Kobeissi Letter also highlighted the US economy’s resilience under President Donald Trump’s proactive measures and financial policies. For instance, the US is adopting a strategic Bitcoin reserve for economic stability and financial leadership.
As of now, the crypto market is trading in the red. The total market cap is down by 1.16%, at $3.26 trillion. Driven by Japan’s economic turmoil, Bitcoin, valued at $103,158 now, had surged to a notable high of $106,566. At the same time, Ethereum rose to $2,579, only to drop to $2,409.
Nonetheless, analysts and market experts believe that the crypto market is poised for a bull run in the long run. With Bitcoin approaching an all-time high and Ethereum potentially leading an altcoin rally,  the current market dynamics suggest a bullish trend.

#Japan #JapanCrypto #JapanEconomy #economy

Министерство финансов США сообщило, что Китай сократил свои вложения в американский долг в марте, продав около $19 миллиардов казначейских облигаций. Это сокращение было зафиксировано в марте на фоне обострения торгового конфликта между двумя странами.
Китай сократил вложения в долг США на фоне тарифного конфликта
Китай готов сократить часть своих позиций в долге США на фоне продолжающейся торговой войны. В марте Министерство финансов США сообщило, что Китай уменьшил свои вложения в казначейские облигации США на $18.9 миллиарда.
Вложения Китая в долг США за этот месяц упали до $765.4 миллиарда с $784.3 миллиарда, зафиксированных в феврале, на фоне обеспокоенности по поводу использования этих активов в качестве оружия в контексте торговой войны.
С этим сокращением Китай опустился на третье место среди крупнейших держателей долга США, уступив Великобритании. Япония, другая страна, потенциально затронутая тарифной войной, является крупнейшим держателем казначейских облигаций США.
Китайские аналитики считают, что эти шаги являются частью усилий по сокращению рисков, связанных с удержанием активов, связанных со страной, которая может не выполнить свои долговые обязательства из-за обостряющегося тарифного сценария.
В этом смысле, Ю Юндин, бывший советник Центрального банка Китая, заявил:
Китай должен разработать комплект контрмер через повторное сценарное планирование, чтобы защитить безопасность своих зарубежных активов.
Фирма Moody’s, занимающаяся кредитными рейтингами, разделяет эти опасения, понизив идеальный кредитный рейтинг долга США с ‘AAA’ до ‘Aa1’. В заявлении, объясняющем свои мотивации, Moody’s подчеркнула, что понижение рейтинга ‘отражает рост за более чем десятилетие государственного долга и отношения к выплате процентов до уровней, которые значительно выше, чем у других аналогично оцениваемых суверенов.’
В феврале, в начале торговой войны, Китай вел себя иначе, увеличив свои вложения в долг более чем на $20 миллиардов. Это удивило некоторых, так как эти действия совпали с первым набором односторонних тарифов на импорт из азиатской страны, которые позже переросли в фактическое эмбарго, с ростом тарифов более чем на 100%.
#china #economy