Last night, Powell announced the acceleration of the digital dollar (CBDC) at a congressional hearing, like dropping a 'financial nuclear bomb', instantly igniting the crypto space. As soon as the news broke, the market capitalization of USDT and USDC plummeted by tens of billions in a single day, the panic index soared by 300%, and retail accounts faced widespread liquidations, with the impact comparable to a tsunami hitting the crypto market.

Three major signals strangling stablecoins

  • The Federal Reserve seizes power: directly pointing out that private stablecoins are a 'time bomb', planning to replace the settlement hegemony of USDT/USDC with the digital dollar, cutting off their foundation.

  • Regulatory intervention: The SEC overnight issued a 'securitization investigation' notice to Circle, the issuer of USDC, and the operator of USDT, Tether, has been placed on the sanctions list, waiting to explode.

  • Capital withdrawal: BlackRock and Fidelity withdraw with billions, stablecoin funds lock up and refuse purchases. On-chain data shows that a USDC whale sold 580 million tokens in one day, with sell orders piling up like mountains.

    Digital dollar's entry into DeFi poses great risks

  • If the digital dollar forcefully connects to DeFi, USDT/USDC could instantly become 'illegal currencies', delisted by exchanges overnight, and holding these tokens might turn them into worthless paper; its decoupling collapse could be ten times worse than the Silicon Valley Bank disaster, last time it halved, this time it might be worth nothing; Bitcoin and Ethereum could also be dragged down, with BTC already crashing to $58,000, and it could get worse after liquidity is drained.

    Retail investors' lifelines: 3 strategies

    • Immediately liquidate USDT/USDC, convert to DAI or BTC spot, being late may lead to being buried.

    • Focus on the Federal Reserve's September decision; once the CBDC pilot is launched, decisively short the stablecoin sector.

    • Buy the dip in MKR, ONDO, and other RWA concept coins; they are the biggest beneficiaries of the digital dollar and are expected to double in value.

    Potential wealth opportunity

    History may repeat itself; after Libra was strangled, Bitcoin rose tenfold. This time, after the digital dollar bloodbath on stablecoins, pure crypto coins like BTC, ETH, SOL may launch an epic counterattack, and those daring enough to get on board might become wealthy.

    In summary, Powell's declaration is unprecedented in impact; we must be vigilant about market trends and adjust strategies in a timely manner. Bull markets are fleeting; what you lack is not opportunity, but the courage to pull the trigger! Follow Xing Ge, and let me lend you a helping hand.
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