Here comes the big one!!!
The financial showdown between China and the United States has entered a heated stage!
The People's Bank of China has just launched a combination of measures, cutting the reserve requirement ratio and interest rates simultaneously, directly injecting 1 trillion yuan into the market. However, the employment data from the US is surprisingly good, making a rate cut in June unlikely. Now both sides are like two martial arts masters in a standoff, waiting to see who will show a flaw first!
On the Chinese side, they are injecting liquidity to stimulate the economy, but must be careful not to get harvested by the dollar; on the US side, they are stubbornly holding high interest rates without cutting, but the debt crisis is a ticking time bomb that could explode at any moment. Next, we need to closely monitor a few key moves: first, Wall Street might take the opportunity to short the Asian market; second, if the China-US tariff negotiations fall apart, we could see the 2.0 version of the tariff war from the Trump era; third, a black swan event could very likely emerge around June, similar to the storm during the 2015 yuan exchange rate reform!
The A-shares might have a short-term surge, but don’t get too carried away; pay close attention to where foreign capital flows.
Bitcoin may become a safe-haven transit point, but be cautious of liquidity being suddenly drained.
Remember, the intensity of this showdown is no less than that of the 2008 financial tsunami; when others are crazy, you need to keep a good exit strategy, and when others are panicking, that’s when you pick up cheap chips! $BTC