Last night, Powell dropped a 'financial bombshell' at the congressional hearing—acceleration of the digital dollar (CBDC) promotion instantly ignited a storm in the crypto world! Upon the release of this news, the market capitalization of USDT and USDC evaporated by $10 billion in a day, the panic index surged by 300%, and a large number of retail accounts were liquidated! The intensity of this impact is comparable to a tsunami hitting the crypto market.
Three deadly signals are pressing on the stablecoin market.
The Federal Reserve has intervened to seize dominance, directly targeting private stablecoins as a 'ticking time bomb', vowing that the digital dollar will completely replace the settlement hegemony of USDT/USDC, intending to sever its roots!
Regulatory crackdowns are severe; the SEC has overnight issued a 'securitization investigation' notice to USDC issuer Circle, and USDT operator Tether has been placed on the sanctions list, potentially triggering a storm at any moment!
A massive capital flight has occurred; BlackRock and Fidelity have withdrawn hundreds of billions, and stablecoin funds refuse new purchases. On-chain data shows that a USDC whale sold off 580 million coins in a single day, with selling pressure like a mountain!
The digital dollar's advance into DeFi officially begins the nightmare.
If the digital dollar enters DeFi strongly:
USDT/USDC will quickly become 'illegal currency', exchanges will urgently delist them, and the coins in hand will turn into waste paper!
A decoupling crash could be 10 times more severe than the collapse of Silicon Valley Bank; the last price halved, this time it may go to zero!
Bitcoin and Ethereum are dragged down; BTC quickly flash-crashed to $58,000, and the aftermath of liquidity exhaustion will be even more severe!
Three self-protection strategies for retail investors:
Immediately liquidate USDT/USDC and convert to DAI or BTC spot; delaying is a deep pit!
Closely monitor the Federal Reserve's September decision; once the CBDC pilot is launched, decisively short the stablecoin sector!
Bottom-fishing MKR, ONDO, and other RWA concept coins; they will become the biggest beneficiaries of the digital dollar, with potential for doubling in price!
History repeats itself, opportunities for wealth are buried in the ruins:
Back when Libra was banned, Bitcoin rose tenfold! This time, after the digital dollar bloodbath of stablecoins, major coins like BTC, ETH, and SOL may welcome an epic rebound; those daring to get on board will profit greatly from the ruins!
Powell's declaration has a tremendous impact; be vigilant about market changes and adjust investment strategies in a timely manner. Stay tuned for the next episode where we reveal the fatal flaws of the digital dollar!
