Interest rate cuts ineffective? Stablecoin bill passed, a flood of funds is about to surge into the crypto space!
In the past, everyone thought that the crypto market would surge only by relying on interest rate cuts, but this is actually a habitual way of thinking.
Because in the past, when interest rates were cut, there was more money in the market, which could lead to more funds flowing into the crypto space.
But this time, the situation is different! Tech companies in the US and China are issuing stablecoins, and the process of issuing stablecoins is essentially the process of funds flowing into the crypto space.
Of course, interest rate cuts still have an impact on the crypto space, but in my view, the effects brought by interest rate cuts can only account for a small portion; what really plays a significant role is the issuance of stablecoins.
Now, the stablecoin bill in the US has been passed, and China has also authorized the first crypto license. Large tech companies like JD.com, Alibaba, Tesla, and Apple are all issuing stablecoins. This means that a large amount of funds will continue to flow into the crypto space through the issuance of stablecoins. With funds continuously coming in, the prices of assets in the crypto space will naturally be pushed up.
I believe this is the new logic of the current crypto market; stop focusing solely on interest rate cuts!