The US dollar is depreciating; why is the crypto market soaring? The reason is very simple!
Did you understand this wave of market movement?
Don't ask why BTC and ETH suddenly surged; the core reason is just two words: quantitative easing! And this easing signal started with the US dollar.
Simply put, the US dollar is depreciating, money is becoming less valuable, but there is more and more money in the market, and spring has arrived for the crypto market!
Why is the US dollar depreciating?
The Federal Reserve is no longer pretending; it is about to start cutting interest rates.
Inflation is decreasing; both CPI and PPI have gone down, and the market is starting to bet on a rate cut in September. Once the rates are cut, the dollar will directly weaken.
The US government is out of money and can only issue bonds and print money.
Every month, it borrows new to pay old debts, with a full fiscal deficit. The more dollars printed, the less valuable the currency becomes.
Funds don’t want to stay stagnant; they are ready to attack.
Previously, everyone relied on high-interest dollars to earn passively; now that interest rates have lost their appeal, money is starting to flow out in search of opportunities—stocks, gold, and Bitcoin are all rising.
Why does the crypto market rise when the dollar depreciates?
In a word: there’s more liquidity, so cryptocurrencies rise!
As the US dollar depreciates and market liquidity loosens, hot money rushes first into high-elasticity assets like Bitcoin and Ethereum.
BTC is now regarded as “digital gold”; the more the dollar depreciates, the more popular it becomes.
The stock market rises slowly; the crypto market can rise in a day what the US stock market does in a month—smart money has already entered.
The depreciation of the US dollar is the trumpet for quantitative easing in the crypto market!
Are you still on the sidelines? Others are already enjoying the BTC surge and driving away in new cars.
Now is the starting point for the next main rise in the crypto market; keep up with the rhythm and don’t miss out again!