Recently, the financial world has been bustling, with the Federal Reserve maintaining interest rates at 4.25%-4.5%. Powell has emphasized "wait" 22 times, clearly playing a game of Tai Chi. Trump is getting anxious, having criticized the Federal Reserve more than ten times this year, calling Powell "Mr. Too Late", essentially campaigning for the upcoming election.
The cryptocurrency market is even more exciting. The U.S. Senate rejected the "Stablecoin Act", with the Treasury Secretary angrily accusing lawmakers of hindering innovation. However, banks have been authorized to conduct crypto custody services, which is a positive development. Bitcoin has surged past $104,000, and Ethereum has skyrocketed by 25% in a single day. Institutional analysts have collectively changed their tune, with Standard Chartered even suggesting that a $120,000 target is too conservative. The CEO of MicroStrategy is still lobbying Microsoft to buy Bitcoin.
Arthur Hayes pointed out the key: the real steering wheel is in the hands of the Treasury Secretary, with the U.S. relying on printing money to survive. The UK has cut interest rates for the fourth time and has reached a trade agreement with the U.S. The White House is preparing similar agreements with countries like Japan and South Korea, clearly paving the way for the elections.
The market expects interest rate cuts to begin in July, with possibly three cuts throughout the year. Whenever rates are cut, it is beneficial for the crypto circle. If Trump truly pushes for a national Bitcoin reserve, it will ignite the market. Although the market is highly volatile, the overall trend is upwards. In this era of rampant money printing, Bitcoin's anti-inflation properties will only become more sought after. The real show has just begun.
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