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Understand the Federal Reserve's interest rate cut in one article
清风btc
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Another plunge: Understanding why the Federal Reserve's interest rate cut has a huge impact on the cryptocurrency market
Author: Qingfeng btc | 12.08 1. What exactly is an interest rate cut? Why can it ignite risk assets?
Interest Rate Cut = The Federal Reserve lowers the target range for the federal funds rate (currently 4.50%-4.75%) Usually cuts by 25 basis points (0.25%) each time, in extreme cases 50 or even 75 basis points.
Core transmission chain (5 steps): Borrowing becomes cheaper → Companies expand production, residents take loans to buy houses and cars Increased willingness of banks to lend → Money multiplier expands, M2 growth rate rebounds Stock market valuations rise (discount rate decreases) → U.S. stocks → Global stock markets
Funds flow out of U.S. Treasuries → Chase high-risk, high-return assets (tech stocks, cryptocurrencies, gold)
Another plunge: Understanding why the Federal Reserve's interest rate cut has a huge impact on the cryptocurrency market
Author: Qingfeng btc | 12.08 1. What exactly is an interest rate cut? Why can it ignite risk assets?
Interest Rate Cut = The Federal Reserve lowers the target range for the federal funds rate (currently 4.50%-4.75%) Usually cuts by 25 basis points (0.25%) each time, in extreme cases 50 or even 75 basis points.
Core transmission chain (5 steps): Borrowing becomes cheaper → Companies expand production, residents take loans to buy houses and cars Increased willingness of banks to lend → Money multiplier expands, M2 growth rate rebounds Stock market valuations rise (discount rate decreases) → U.S. stocks → Global stock markets
Funds flow out of U.S. Treasuries → Chase high-risk, high-return assets (tech stocks, cryptocurrencies, gold)
The official end of the Federal Reserve QT + Countdown to December rate cut: The true carnival in the crypto circle has just begun.
On December 7, the two most explosive news items in the entire network: The Federal Reserve has completely ended quantitative tightening (QT), with a $6.6 trillion balance sheet no longer shrinking, money is sufficient! Next Wednesday (December 11), the Federal Reserve's interest rate meeting has an over 85% probability of a 25 basis point rate cut. Summary in one sentence: After turning the faucet for more than three years, it finally opened. 1. What happened in the past three years? From 2022 to 2025, the Federal Reserve will withdraw $95 billion from the market every month. Bitcoin was brutally pulled down from 126K to 83K. Market value evaporated by $1.5 trillion. Leverage liquidation, institutions running away, retail investors cutting losses, all because of 'no money'.
《Qingfeng Popular Science|USDT falls below 7 yuan, if it really collapses, what will happen in the cryptocurrency circle?》
The most chilling news these days is not the BTC fluctuations, nor the ETH pullback, but that the USDT price has fallen below 7 yuan. In the cryptocurrency circle, USDT (Tether) is not just an ordinary coin; it is the 'air of air' and the lubricant for the entire market's operation. Once it has issues, the consequences will be more severe than most people imagine. What exactly is 'USDT de-pegging'? Why is it said that its collapse would be catastrophic? Today, Qingfeng will explain it clearly. 🧨 1. What is 'de-pegging'? USDT claims: 1 USDT = 1 dollar (theoretical) This means: it should be stable, should be equivalent, and should not fluctuate.