Friends! Tonight's news is big and juicy! Uncle Trump suddenly 'fires' at the Federal Reserve, forcing Powell to quickly lower interest rates, and with the EU-US hundred billion tariff war on the brink of explosion, global market nerves are instantly tense! Is this double blow a blessing or a curse for our crypto world? Ailes will help you interpret it on the front lines!
The first fire: Trump pushes the Federal Reserve's gas pedal hard!
Latest news, Trump's team is frantically pressuring the Federal Reserve to cut rates quickly! Why the rush? On one hand, it's to give the economy a boost before the election, and on the other hand, it may also be driven by the US-EU trade friction (details below). What does the market fear the most right now? It fears that the Fed can't withstand the pressure and messes up, devaluing the dollar or causing policy chaos! This uncertainty often makes smart money start looking for new avenues!
The second fire: The US-EU hundred billion tariff war is entering the countdown!
Do you remember the explosive news today? The EU has dropped a 'bombshell' of 100 billion euros (117 billion USD)! They declared that if the US dares to impose a 30% tax on EU goods after August 1, the EU will immediately retaliate with a 30% heavy tax on US planes, cars, whiskey, and other goods worth hundreds of billions! Both sides are taking real money to strike at each other's weaknesses, and the global economy is about to 'shake three times'!
What impact will these two fires have on BTC and ETH? Ailes highlights:
Is there a 'trust crisis' in the US dollar? The attraction of crypto assets is UP!
With Trump pressuring the Federal Reserve like this, is the market most worried about whether dollar policy will go haywire? If the Fed is really forced to lower interest rates chaotically, it might undermine the credibility of the dollar. At this time, BTC and ETH, which do not rely on any country and have a limited supply, shine with their natural anti-intervention properties! They are like 'hard currency' in the digital world, and their appeal may soar! Some funds, to hedge against dollar risk, are very likely to flow into the crypto market.
Global turmoil escalates, adding another fire to the demand for safe havens!
Trade war (hundred billion tariffs) + monetary policy intervention (pressuring the Federal Reserve), a double uncertainty bomb! The traditional market (stock market, bond market) will definitely tremble. Historical experience repeatedly proves that the more chaotic it is, the more BTC and ETH’s 'digital gold/silver' properties are valued! They may become a 'safe harbor' for more funds seeking security. (Remember: safe haven ≠ absolute safety, but demand will increase!)
Expectations of interest rate cuts are rising, which is favorable for all risk assets?
Trump is desperately calling for interest rate cuts, and market expectations for rate cuts are indeed rising. If the Federal Reserve really cuts rates, it will theoretically release more liquidity (more money). This extra money has to find a place to invest, right? Besides the traditional market, the crypto market, especially the leading BTC and ETH, is very likely to become a new target for funds! When the tide rises, you understand!
What’s the future for BTC and ETH? Ailes gives you a peace of mind:
Short-term favorable factors are stacking up! Expectations of rate cuts (potential liquidity increase) + escalating trade frictions (demand for safe havens) + concerns about dollar policy (seeking alternatives), these three buffs (beneficial effects) almost all point towards potential benefits for BTC and ETH. As the core assets of the crypto world, they are most likely to absorb this new demand.
Focus on the key date! August 1! August 1! August 1! This is the deadline for US-EU tariff negotiations! The result will directly affect whether the trade war powder keg will explode. At the same time, the Federal Reserve's statement at the end of July is also crucial, watching whether Powell can withstand the pressure. These two time points may increase market volatility, with opportunities and risks coexisting!
Don't let emotions pull you along! The busier the news is, the more you need to stabilize your mindset. There may be short-term surges and also possible fluctuations and washouts. Manage your positions well, don’t go all in, don’t leverage heavily! Before the trend is clear, retaining strength is the most important.
Ailes summarizes:
Trump's strong push for interest rate cuts + the EU-US hundred billion tariff confrontation, these two major events are like giving a 'shot of adrenaline' to the crypto market, especially BTC and ETH! Expectations of rate cuts, demand for safe havens, and concerns about the traditional monetary system may drive funds to flow into the crypto world. Although the global situation is turbulent, opportunities often lie hidden within crises! Brothers, fasten your seatbelts, keep an eye on the big show in August, and follow Ailes to navigate the bulls and bears and seize opportunities!
I am Ailes, here to help you penetrate the fog of the crypto world and seize hardcore opportunities! Follow me for continuous insights on crypto opportunities under the storm of the trade war! What you lack is not luck, but Ailes' top-notch team!
