A new day has begun.
We need to analyze a super variable that will affect the next 10 years.
Yesterday, Trump made a shocking proposal: completely cancel the debt ceiling.
[Bomb]
!
In addition, the U.S. tax reduction bill has currently been submitted to the Senate.
Both of these will significantly increase the U.S. fiscal deficit and debt scale.
Even Trump's good friend Musk is willing to break with Trump.
Strongly opposed to these measures on X.
Because these measures will accelerate the U.S. towards the abyss of debt slavery, heavily indebted.
[Disappointed]
.
So what impact will this have on our crypto market?
Let's analyze from both the short-term and long-term perspectives.
[Down]
:
(1) In the short term, it is beneficial ✅.
Because canceling the debt ceiling can avoid a U.S. government shutdown and debt default.
Stabilize global market sentiment in the short term, alleviating the pressure of U.S. debt sell-off.
U.S. Treasury yields will not rise significantly, leading to capital outflow from the cryptocurrency market.
(2) In the long term, this is also beneficial ✅.
Because the whole world can see that the U.S. fiscal deficit may spiral out of control, and the debt scale is expanding rapidly (currently over 36 trillion dollars), weakening the dollar's credit.
Countries may accelerate the reduction of U.S. debt holdings, promoting the de-dollarization process (e.g., China and Japan have reduced their U.S. debt holdings), shaking the dollar's status as the global reserve currency.
The dollar falls, U.S. assets fall, and most of the outflowing funds need a place to go.
Some will flow into gold, some into Asian and European stocks, and some into BTC.
Overall beneficial for BTC's position as a dollar replacement.
[Rocket]
.
Why is Trump willing to do this?
[Puzzled]
Analyzing from the deep motivations of Truman.
(1) Anyway, he only works for 4 years, cancel the debt ceiling and borrow more money.
Meet short-term needs, and long-term issues can be left to the next president.
(2) His family and surrounding elites have bought a large amount of BTC.
Doing this is beneficial for the surge in BTC, making a profit for oneself, why not?
In March, we had already analyzed Trump's motivations for the brothers ⚠️.
I advise everyone to hold on to their chips and not to easily cut losses at the bottom.
Trump first created panic with tariffs, and then let his family take advantage of the situation.
Then restore BTC market through tariff negotiations.
Through today's analysis 📈,
We have already seen the major trends of the future.
Everyone has an idea of how to operate in the future.
I will send more core analysis to the Huiyuan group.
