Let's talk about the story behind the plunge in the US stock market in the cryptocurrency circle!
Japan's interest rate hike actually has a very negative impact on the global financial market.
As we can see from this big drop, ETH directly wiped out all the gains this year.
What is the reason behind it?
On the one hand, we see that Japan's interest rate hike caused Wall Street to buy some assets due to interest-free loans in the early stage.
As a result, the interest needs to be paid immediately, which has brought about a tight liquidity situation.
According to rumors, the goal of the Fed's interest rate hike is to achieve domestic inflation.
But now the Fed is basically giving up such a goal.
In addition, the election is approaching, putting pressure on the Fed to make it cut interest rates sharply earlier.
Under such circumstances, inflation in the United States has not been effectively controlled.
So it triggered this big drop.
