On the Fed's rate cut
1. The Fed's rate cut will indeed release some liquidity, but it will also shorten the interest rate gap between Japan and the United States. Fund flow depends on the interest rate gap.
2. The scale of Japan's carry trade is about 20 trillion US dollars. The reduction in US dollar interest rates will definitely cause funds to flow back to Japan, and US dollar assets will be sold off. A considerable part of the return will be used to repay loans. This is why the return of funds to Japanese stocks did not rise.
3. Rate cuts are not good news. The Fed does not look at inflation, but at economic conditions. If the interest rate is really cut, it means that the economy is not good.
4. In the past few years, the yen carry trade can kill two birds with one stone, that is, the exchange rate difference and the return on US financial investment. The stock market crash some time ago has shown that there is capital rushing, but I don't think it has reached a turning point. Because even if the Fed cuts interest rates and the Bank of Japan raises interest rates, the interest rate gap between them is still huge, which means that funds will not be completely withdrawn in the short term.
5. For the cryptocurrency market, interest rate cuts are still a topic worth hyping.