When the Federal Reserve Chairman's palm heavily slams on the conference table! The global financial market hears the tremor. The remarks of this 'storm warning' figure in finance last night sent chills down the spine of every cryptocurrency holder—Powell's warning is like a sword hanging over their heads.
He emphasized the need to pay attention to the policy trends of central banks worldwide, but avoided talking about 'interest rate hikes/cuts', which is akin to the oppressive atmosphere before a storm. The lessons from the collapse of the gold standard in the 1970s are still fresh, as the sluggishness of decision-makers at that time cost the entire financial system dearly. Now, if the dollar experiences a drastic fluctuation of over 10%, the first to be affected will be the cryptocurrency market, which trades 24/7 without pause.
History is always remarkably similar: In 2023, the Bank of Japan's 'money printing' led to a plummet of the yen and a subsequent surge in Bitcoin; while in 2022, the soaring dollar index caused the total market value of cryptocurrencies to evaporate by $2.3 trillion. When the dollar index, this sword, begins to tremble, the entire crypto world will fall into a chain reaction. The social media dynamics of Treasury officials could become the fuse that ignites the market.
In the face of the storm, retail investors need to build a refuge. Stablecoins will become the 'Noah's Ark' of the crypto world. When Bitcoin breaks below $60,000 and Ethereum drops below $2,500, it might be the opportunity to enter at the bottom. But more importantly, it is crucial to keep an eye on key indicators: When the dollar index breaks 106, it will be the critical point for systemic risk to erupt; once Treasury officials become active on social media, an emergency plan must be activated immediately.
At this moment, we may only be a step away from a 'dollar tsunami' that could rewrite crypto history. In this financial game, every cryptocurrency holder is like a puppet, with the strings held in the hands of the dollar tide. The time left for retail investors to build their breakwaters is running out.
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