š„ATTENTIONš„
š„These are the 5 issues you need to PAY ATTENTION to as an INVESTOR.
šIt affects both the STOCK market and #Bitcoin and the #crypto market:
1- THE FEDERAL RESERVE
š¹The CENTRAL BANK of the U.S. has the CAPACITY to RAISE and LOWER the dollars and credit by manipulating the interest rate.
š¹Additionally, it can STIMULATE the ECONOMY with other tools, such as QE (asset purchases by the FED).
š¹Dollars and economic credits + economic stimuli = POSITIVE for financial markets.
2- TARIFFS and the TRADE WAR
š¹Trump's tariffs have the potential to generate a GLOBAL RECESSION.
š¹ANNOUNCEMENTS of AGREEMENTS between countries are considered something POSITIVE by investors.
š¹On the contrary, the AGGRAVATION of the situation is something NEGATIVE.
3- Japan and its LIQUIDITY
š¹Japan FLOODED the system with liquidity (yen). Investors, for years, borrowed money at almost FREE rates.
š¹It is estimated that the amount requested in yen reached about $20T.
š¹If Japan's interest rate and/or bond yield increases, it is considered a WITHDRAWAL of liquidity from the system (I have a post on my account where I explain it in depth).
4- REBUYING Treasury BONDS
š¹The FED is not showing a willingness to REBUY ASSETS in the market (QE).
š¹Bessent stated that, in the event of liquidity problems, they could go out and repurchase BONDS if the FED does not.
š¹This would act similarly to a QE and would be POSITIVE for the market.
5- STRATEGIC RESERVES of #Bitcoin
š¹If countries start to BUY
$BTC it could be one of the most bullish things we have seen so far.
š¹CEO of #Binance: "In fact, we have received several proposals from some governments and sovereign wealth funds regarding the establishment of their own #cryptocurrency reserves.ā
šWhile there are more factors to consider, these are some of the MOST IMPORTANT.
#TradingPsycology $BTC