A fan asked me: Is now a good time to buy the dip?
BTC broke through 86,000 USDT this morning, with a 24H increase of 2.59%. I believe this is related to the recent financial report released by the Federal Reserve, and it would not be an exaggeration to say it was a "surprise" explosion.
On March 21 local time, the Federal Reserve released an audited financial report showing that the Federal Reserve had an operating loss of 77.6 billion USD (approximately 560 billion RMB) for the entire year of 2024, marking a huge loss for the second consecutive year.
The main reason for the Federal Reserve's massive losses is its strong support for the economy during the pandemic in 2020 and 2021, as well as the sharp interest rate hikes in 2022 and 2023 to combat high inflation, raising the benchmark interest rate from nearly zero to a range of 5.25% to 5.5%.
When the Federal Reserve can return to profitability depends on its future interest rate reduction path. The New York Fed's forecast shows that if short-term rates remain above 4%, the Federal Reserve will continue to incur losses this year; if rates are continuously lowered, the Federal Reserve may achieve profitability.
If the rate is cut by 50 basis points, the rate will stay at 3.75% to 4.0%, making it impossible for the Federal Reserve to achieve profitability.
Only by cutting 75 basis points can the Federal Reserve achieve profitability.
In the near future, the Federal Reserve may continue to lower interest rates, so a 75 basis point cut is a certainty.
A fan asked me: Is now a good time to buy the dip?
I believe that Ethereum right now has a very high cost-performance ratio; if you're brave enough to buy the dip, you won't miss out.
Another fan asked me: Bitcoin is rising, but Ethereum is not only not rising but is actually falling; will Ethereum catch up?
Yes, it will catch up, first Bitcoin, then Ethereum, and then altcoins.
Pay attention to: XRP, Trump, BMT, Cake
