BREAKING BREAKING BREAKING 💡
🇯🇵 Japan will raise rates by 100 basis points at its next meeting! Rates will rise by 1%, covering 700 billion in ETFs! — Global funds are shaking, is the crypto bull market on the verge of collapse?!
🇯🇵 Japan has just announced that it will raise the rate by 100 basis points at its next meeting! This news instantly shook the market! Yesterday's statement at the meeting clearly indicated that the current rate remains too low, which means that the Bank of Japan will further ease monetary policy, which is a very strong blow to the market!
Why is this so bad for the market?
First, raising rates means higher financing costs, and businesses and consumers will feel the extra burden, which will slow economic growth. Especially for the crypto market, rising rates will cause more investors to turn to more stable traditional assets, and the cryptocurrency market may face capital outflow pressure.
In addition, as the world's third-largest economy, a change in Japan's monetary policy will have a broad impact on global markets, especially in the context of synchronization with the Fed's monetary policy, which could lead to more significant market volatility.
This decision undoubtedly signals the Bank of Japan's dissatisfaction with the current economic situation and indicates that low interest rates are no longer capable of stimulating economic recovery. However, it also means that the market will face tougher conditions, high rates may lead to financial stress, capital flows will slow down, and a wave of selling of risky assets will gradually unfold.
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