The cryptocurrency world is going crazy! Is the Fed’s July rate cut a sure thing? Bitcoin and ETH are going to soar, and the on-chain data reveals the main players’ actions. Tonight, the cryptocurrency players are collectively climaxing! Fed Governor Waller suddenly released a nuclear-level signal of “July rate cut”. Inflation is cooling down + employment is stable. Will this wave of liquidity injection send cryptocurrencies to the sky?
Fed rate cut = loose US dollar liquidity = risk asset carnival. The 2020 liquidity injection that gave birth to the $60,000 Bitcoin bull market is still vivid. Now Waller has made it clear that “interest rates are too high and need to be reduced”. Inflation PCE has fallen to 2.8%. Strong employment data does not hinder rate cuts. This is the perfect script for “painless easing”!
BTC exchange balance fell below 1 million, hitting a new low in 18 months, which means that selling has dried up; USDT market value surged by 2 billion in a single week, and OTC funds entered the market crazily; Ethereum active addresses rose by 37% in a few weeks, and Layer2 transfer volume doubled. Funds are scrambling to buy potential tracks!
Looking at the linkage of US stocks, the Nasdaq hit a record high, the "risk resonance" mode of technology stocks and cryptocurrencies was restarted, the premium of Grayscale Bitcoin Trust turned positive, and institutional funds have been deployed in advance.
But I want to pour cold water: Is the expectation of interest rate cut overpriced in? If the interest rate is really cut in July, will the good news turn into bad news? However, the current CPI and PCE have both fallen, and employment has not collapsed. The Federal Reserve has the confidence to "gentle and loose", and this round of bull market will be more durable!
Don't wait for the market to start before chasing highs! Follow me, leave a message to get on the bus and seize the opportunity to eat meat!
